[1]Indian economy is likely to clock double-digit growth by 2012 and is expected to grow over 8.5 per cent in the current fiscal, the finance minister, Mr Pranab Mukherjee, has said.
“That it (double digit growth) would perhaps be by 2012,” Mr Mukherjee said.
Asked about the GDP outlook for the current fiscal, Mr Mukherjee said, “We are going to have more than 8.5 per cent growth.”
IMF has projected 8.8 per cent, he said, adding, “in our economic survey we have projected, for the year 2010-11, eight and half per cent. ”
The finance ministry’s forecast for 2010-11 was 8.5 per cent growth.
During 2009-10, Indian economy grew at a better than expected rate of 7.4 per cent. The GDP expanded over 8.6 per cent in the last quarter of the said fiscal. The GDP growth was despite agriculture output remained flat.
Mr Mukherjee attributed the strong performance of India’s economy through the financial crisis in part to the country’s “dynamic” corporate sector and to high levels of savings and investment.
He said India was saving and investing about 34 per cent of GDP, compared with around 30 per cent prior to 2003.
“Data we have received for the last couple of months suggests that this is still rising,” he added. The finance minister said these investment levels gave him optimism that India can break into double-digit GDP growth.
Allaying fears of European crisis is having an impact on the Indian economy, Mr Mukherjee said, it will not have much impact as the exports to the region are limited.
“But, if it spreads, then it may have an impact. Therefore, it is necessary that it should be confined to those countries.
It is expectedly the package which has been worked out to resolve the crisis, will take care of it,” Mr Mukherjee said.
— Reuters, PTI
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DTC draft rates just indicative
Washington, June 23: The finance minister, Mr Pranab Mukherjee, on Wednesday rejected criticism of the revised draft Direct Taxes Code over the proposal to restore exemptions in the income-tax, saying the rates are indicative and not final.
Changes cannot be presumed as “progressive or regressive”, he said, making it clear that tax rates are the prerogative of the Parliament. He was replying to a query about criticism that the revised draft is a throwback to the days of exemptions, and if the government had backed away from reforms. — PTI
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