New Delhi: India's economic growth rate will advance to 6.5 per cent in 2010 on the back of robust domestic demand and rising private investment, according to the International Monetary Fund’s (IMF) twice-yearly World Economic Outlook, released in Istanbul.

IMF’s regional economic outlook stated, “India's growth is expected to accelerate to 6.5 per cent in 2010 from 5.33 per cent in 2009, on the back of strong domestic demand.” It added, "In particular, the normalisation of financial conditions is expected to support a rebound of private investment, sustaining demand even as the fiscal stimulus wanes."

The Reserve Bank of India (RBI) has pegged economic growth at 6 per cent and upwards for 2009-10 in its second quarterly review of monetary policy and Prime Minister Dr Manmohan Singh has said that the Indian economy would grow by 6-6.5 per cent in the current fiscal.

The IMF added that economic recovery in Asia is faster than the elsewhere and that it is projected to grow by 5.75 per cent during 2010 compared to 1.25 per cent predicted for the G-7 economies. It said that China and India are bouncing back more quickly that the western world.