Pranab projects 8 per cent growth for FY09

According to finance minister Pranab Mukherjee, India's economy may grow as much as 8 per cent in the current financial year. He added that he would consider withdrawing some fiscal stimulus steps over the next two months.

Speaking at the 104th annual session of the PHD Chamber of Commerce and Industry in New Delhi today, Mukherjee said that recent economic data confirms that the green shoots of recovery were finally taking root and at the current rate the economy would resume the spectacular growth rate of 9 per cent registered during the pre-downturn period.

The government injected fiscal and monetary stimulus exceeding 12 per cent of gross domestic product between September 2008 and April this year, as recession took the global economy in its grip.

India, Asia's third-largest economy, however, continued to grow, albeit at a slower pace achieving a 7.9 per cent growth last quarter, the fastest pace in 1 1/2 years.

Mukherjee said the target growth of 9-10 per cent had been there for a very long period and was now within reach and it would be achieved.

Industrial production surged 7.1 per cent between April and October as compared with a 4.3 per cent gain in the same period last year.
The economy is expected to maintain a growth rate of 6.7 per cent during 2009-2010, the same as the last fiscal, as some signs of pick-up are visible.

Mukherjee, who it seems, has a firm finger on the economic pulse, has been consistently upbeat on the economy and had as far back as July this year, in a written reply told the Rajya Sabha that having ended 2008-09 at 6.7 per cent he hoped the economy would maintain the same pace of growth in 2009-10.

Earlier this month he said he was hopeful that if the trend continued the economy would growth 7 per cent.