| Date: |
08-12-2010 |
| Subject: |
FM eyes 9% growth in new forecast |
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NEW DELHI: Forecasting 9 per cent economic growth and exuding confidence that inflation will cool down in March next year, Union Finance Minister Pranab Mukherjee on Tuesday cautioned India against the impact of fragile European recovery.
After tabling the Mid-Year Economic Analysis 2010-11 in Parliament on Tuesday, the Finance Minister gave this caution as a sizable percentage of Indian exports are destined towards Europe.
“Therefore, the recovery — rather rapid and robust recovery — of Europe is important from India’s point of view,” he said.
The mid-year analysis projected economic growth in the range of 8.75 per cent plus or minus 0.35 per cent. This is against 8.5 per cent plus or minus 0.25 per cent projected in Economic Survey, brought out in February this year.
“All indicators portend well for output growth crossing 9 percent for the entire fiscal year 2010-11, although some risks remain in the global economy which widens the band of expected growth outcomes (plus or minus 0.35 per cent around a revised projection of 8.75 per cent; up from a baseline level of 8.5±0.25 per cent projected in the Economic Survey 2009-10),” he pointed out.
It was originally 8.9 per cent in both terms and now first quarter has been revised from 8.8 per cent to 8.9 per cent.
On the fragile economic recovery in Europe, Mukherjee said: “One of the reasons is there have been certain uncertainties like recovery of Euro. “And Europe has relevance from viewpoint of FDI, investment and also from external trade, particularly export,” Mukherjee said.
After sovereign debt crisis in countries like Greece, Portugal and Spain, Europe has been hit by a financial mess in Ireland.
On inflation, the Finance Minister said though falling, it should decline further.
“Inflation is coming down. Now it is at the single digit but I would like it to be further reduced. I am hoping that by March it would be around 6 per cent, but it should come down further,” he said.
The analysis said inflation has started coming down and is placed at 8.6 per cent in October as compared to 11 per cent in April.
Source : expressbuzz.com
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