FM sees GDP growth at 8 pc
Notwithstanding the International Monetary Fund’s growth projection of around 9.5 per cent for the Indian economy, Finance Minister Pranab Mukherjee, on Monday, guardedly said it would be a matter of satisfaction if the economy clocked a growth rate of over 8.5 per cent in the current fiscal 2010-11).
“The IMF has projected 9.4 to 9.5 per cent growth rate for the Indian economy. This shows growing confidence of global bodies in the resilience of Indian economy,” he said at the day-long conference on Financial Inclusion organised by CII here.
“I was inclined to accept the IMF assessment. Still I would like to be conservative in my assessment. I will be happy with 8.5 per cent plus growth for the Indian economy,” he said.
The IMF recently revised the country’s GDP growth estimate to as high as 9.5 per cent from its earlier projection of 8.8 per cent in 2010. In the face of ongoing recovery in the Indian economy, which came under the ripple effect of global slowdown, there is now growing optimism for the country’s economy to get back to higher growth trajectory. The Indian economy after posting over 9 per cent growth rate for three consecutive fiscals beginning from 2006-07 recorded a decline in 2009-10 when the growth rate dropped to 7.4 per cent.
But going by global standard India’s growth rate at 7.4 per cent in 2009-10 despite global slowdown is considered to be remarkable by several international economic bodies.
In the face of consistent double digit growth rate in industrial production especially in the key manufacturing sector there is overwhelming expectation that the economy would grow faster than the projected 8.5 per cent growth rate during 2010-11.
