Public RelationsEconomy could grow by 8% in current fiscal: FM
The Finance Minister, Pranab Mukherjee, today said the economy could grow by 7.5 to 8 per cent during the current financial year, though price rise and fiscal consolidation remained areas of concern.
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"The Mid Year Review projected a growth rate of 7.75 per cent (for 2009-10), but it would be more appropriate to say 7.5 to 8 per cent", Mukherjee said, addressing the 104th annual session of the industry chamber PHDCCI.
The Review, tabled in Parliament by him last week, had said the growth rate during the year could exceed the optimistic projection of 7.75 per cent, up from 6.7 per cent recorded during 2008-09.
The Minister further said that a growth rate of 9-10 per cent, "which we have dreamt for a very long period of time is now within our reach and we have to achieve it".
Indian economy was expanding at 9 per cent before it was hit by the global financial meltdown which pulled down the growth rate to 6.7 per cent during 2008-09.
During the second quarter (July-October) of the current fiscal, the economy grew by 7.9 per cent, more than what was estimated by any analyst or think tank.
Referring to areas of concern, the Minister said the short and medium term challenges before the government is to deal with price rise and increasing fiscal deficit.