India’s economic boom will continue into 2009, according to influential think tank Center for Monitoring India Economy (CMIE).

The forecast 9.5% expansion will be driven by fixed investment, which should offset any slowdown in consumption.

However, inflation reached 8.75% at the end of May, forcing the central bank to raise its key lending rate by 25 basis points (0.25%).

Despite CMIE’s optimistic spin on Indian growth, Straight From the Hip editor Jawahir Mulraj is not so sure if India’s economic boom is built to last…