Indian economy to grow at 7-7.5 per cent: Kirit Parikh
08 May 2009
India continues to be in the high growth trajectory and the country is expected to post a 7-7.5 per cent GDP growth in the current fiscal (2009-10), Planning Commission member Kirit Parikh said today.
He said there are signs of significant revival in the economy, including in the investment climate. The stock markets too have seen some action in recent times.
Demand for both steel and cement demand has considerably increased, although construction activity has slackened, he said, adding, ''a third stimulus package will push infrastructure development in a big way
He, however, said the country needs to push its infrastructure investments to achieve a higher growth rate. Besides investments in highway projects, Parekh said, India also has around 25,000-30,000 km of secondary roads that need urgent upgradation.
"We are seeing a turnaround and will get 7-7.5 per cent growth in 2009-10 with some sensible measures, which I think any government which comes, will take in stimulating the economy," Parikh said on the sidelines of a conference.
The planning commission, meanwhile, has initiated a process of mid-term review of the Eleventh Five Year Plan (2007-12). The review, however, will take more time as a new panel will take charge in the meantime, according to planning commission deputy chairman Montek Singh Ahluwalia.
The mid-term review comes in the backdrop of the RBI projecting a 6.5-6.7 per cent growth for the economy against the 9.0 per cent achieved over the past few years.
The mid-term review of the five-year plan is meant to assess the progress and take corrective action to achieve the targets.
