Bouyed by the 7.9 per cent GDP growth in the 2nd quater, the Finance Minister Mr Pranab Mukherjee has expressed the hope that the economy will grow stronger in October-March period.Addressing the CEOs conference on Globalisation and Inclusive growth in New Delhi on Friday, he said that the biggest challenge of the economy is to return to the 9 per cent growth rate.The minister said that the 7.9 percent growth in the country's economy in the September quarter is the fastest in 18 months. He said that India's reform process have been deliberate and slow but are irreversible.The minister said that the industry and services sectors have emerged the main drivers on the event of slowdown in agriculture due to weak monsoon.The main thrust of the economy, Mr Mukherjee said, is improving the efficiency and efficacy of the tax system and expanding tax base.On the infrastructure development, he said that the government has allowed 100 per cent Foreign Direct Investment through automatic route in power generation, transmission and distribution and all road projects.Mr Mukherjee, however, said that there is a need to draw right lessons from the recent developments and asked the czars of Indian Indian industry to come forward and contribute in the process of growth.Earlier, the Prime Minister's advisory council revised the growth target for the current fiscal from 6.5 per cent to 7 per cent.Chairman of the Panel Dr C Rangarajan said that the growth rate in the next fiscal will be between 7 to 8 per cent and will reach to 9 per cent in the subsequent year. He called for bringing down the fiscal deficit to manageable levels. It is currently stand at a high rate of 6.8 per cent which he said is unsustainable.
News On AIR | December 4, 2009 7:58 PM
Pranab confident of strong growth in October-March