Government to continue efforts for restoring 9% growth: Mukherjee

Finance minister Pranab Mukherjee today that the government would continue its efforts to restore the pace of growth of the economy to 9 per cent from 7.4 per cent during 2009-10 and then further push it to double digits.

"I will not say we are still out of woods... The immediate task before us (the government) is to quickly revert to the GDP growth path of 9 per cent and then find the means to cross the double-digit growth barrier," Mukherjee said at an event organised by UTI in Mumbai.
He said over a 12 to 18 month period, India had to face a number of crises including a crisis commodity prices, a crisis in energy prices, the financial meltdown and the negative impact of a drought.

"Fortunately, thanks to you who are present here, entrepreneurs, bankers, captains of industry, and the right kind of policy decisions by both government and the RBI, it was possible for us to overcome the crisis," he said.

Growth of the Indian economy slowed down significantly with the global economic deepening around mid September, 2008. Economic growth was down to 6.7 per cent during 2008-09 as against 9 per cent growth in the previous three years.

The growth picked up on government stimulus to the economy after taxes were cut and public expenditure increased. Economic growth accelerated to 7.4 per cent in the last fiscal and this year the economy is expected to expand by 8.5 per cent despite a partial roll back of stimulus.

He added that effective savings mobilisation and channelisation into investment was necessary for sustainable growth.