November 28, 2009 9:14 PM

printer

Economy to grow between 6 & 7 per cent despite setbacks: Pranab

Finance Minister Pranab Mukherjee exuded confidence that the economy would grow between 6 and 7 per cent this fiscal despite the setbacks due to a delayed monsoon and floods . However, he said, the care will have to be taken while either withdrawing or continuing with the stimulus package given to spur demand. While an early exit from stimulus measures may hamper nascent economic recovery, keeping these in place for long may overheat the economy. The Minister was delivering the Haksar Memorial lecture on 'Asian Economy after the Financial Crisis: An Overview' in Chandigarh today.The Indian economy grew by 6.1 per cent in the first quarter, from 5.8 per cent in the preceding two quarters, which he called as start of the recovery. Mr. Mukherjee said the effort now is to bring the economy back on the growth path of nine per cent per annum at the earliest. <br/><br/>On fiscal deficit, the finance minister said the 13th Finance Commission, scheduled to submit its report later this year, will lay the roadmap for fiscal consolidation. According to the papers laid in Parliament, the government has targeted to cut fiscal deficit to 5.5 per cent of GDP next year and four per cent during 2011-12.<br/><br/>While pointing out that the global financial crisis seems to have bottomed out, Mr. Mukherjee said uncertainty over dollar due to large US fiscal deficit and slow return of the risk appetite of international investors will remain for some time. He said the sharp recovery of Asia, particularly India and China, meant the beginning of a paradigm shift in global economic power towards Asia.<br/>

Most Read
View All arrow-right

No posts found.