New mfg policy will boost exports: FM.

NEW DELHI, INDIA: The government will target 7.5-8 per cent growth in 2012-13 against the estimated 7 per cent in the current fiscal ending March 31, finance minister Pranab Mukherjee said on Thursday.

"The Prime Minister's Economic Advisory Council (PMEAC) has pegged growth over 7 per cent this year and 7.5 to 8 per cent for next year. We will try to achieve that growth rate," Mukherjee told reporters here.

In its economic review for 2011-12, the panel on Wednesday pegged the GDP growth for the current financial year at 7.1 per cent, marginally higher than the 6.9 per cent growth projected by the Central Statistical Organisation.

This year's projected GDP growth is substantially down from the budgetary target of around nine per cent, and 8.4 per cent expansion registered in the previous year.

Mukherjee, who is scheduled to present the budget for 2012-13 in Lok Sabha March 16, said the high current account deficit was a matter of concern.

However, the finance minister said a high growth in exports would help manage the current account deficit.

"Current account deficit (CAD) is a matter of concern. I think we will be able to manage CAD because our export basket and destinations are getting diversified," the finance minister said.

Mukherjee hopes that the new manufacturing policy would help further exports. "With the introduction of new manufacturing policy I do hope exports should get a boost.”

Source : ciol.com