The Indian government estimates the economy will expand by 6-6.5 per cent in the year beginning April 1, a senior finance ministry official said on Friday.

"For the fiscal deficit estimate of 5.6 per cent, we expect the GDP to grow between six and 6.5 per cent next year," the official, who did not wish to be identified, told Reuters.

The Indian economy, the world's 12th-largest, is projected to expand by 4.4 per cent in the current year to the end of March, down from last year's 5.6 per cent, according to an official forecast.

Earlier, Finance Minister Jaswant Singh said he believed India was in a position to exceed growth of six per cent next year after he announced a populist budget.

Reuters