Mumbai Sensex climbs as India issues optimistic growth forecast

<p>India’s key benchmark has made gains following an optimistic growth report.</p>

The Mumbai Sensex has climbed today (February 27th) after India's finance ministry released optimistic economic growth figures.

Ahead of the unveiling of the nation's budget tomorrow, the ministry predicted that economic growth in 2013-14 will be between 6.1 per cent to 6.7 per cent after having fallen to five per cent in 2012-13.

However, this data survey calls for more action on widening the tax base and creating jobs to help stimulate the country's economy.

India has been stagnating in recent years as a result of the global downturn, which hit its key manufacturing sector and services industry very hard.

"Despite the slowdown, the services sector has shown more resilience to worsening external conditions than agriculture and industry," the ministry's report stated.

At close of play in Mumbai this morning, the Sensex rose by 0.7 per cent – or 137.2 points – to an index value of 19152.4 points.

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