2012-13 to be turnaround year for Indian economy: Mukherjee

Dismissing fears over India's growth rate may falling to less than 6.5 per cent finance minister Pranab Mukherjee today said 2012-13 would be the turnaround year for the economy.   Addressing a conference of top officials of the Income Tax Department, he said steps were under way to put India back on the path of high economic growth.

"We are taking all necessary steps to ensure that we come back to the path of the targeted GDP growth. Of course it will take some time...but from this year we expect to make a turn around," Mukherjee said.

In the budget 2012-13, the government had pegged GDP growth for 2012-13 GDP growth at 7.6 per cent (plus, minus 0.25 per cent).

Following a "disappointing" nine-year low growth of 6.5 per cent in 2011-12, concerns have been voiced that India's expansion rate this fiscal may slip further.  According to Mukherjee, after the 2008 economic crisis, the GDP growth slid to 6.7 per cent in 2008-09, but bounced back to 8.4 per cent in the two financial years following.

Highlighting the positive aspects of the economy, Mukherjee said interest rate cycle had been reversed and there was growth in the mining sector. He also cited turnaround in investment growth rate and predictions of normal monsoon, besides decline in crude oil prices as positives to the current economic scene.

"All these factors should help in recovery of domestic growth momentum," he added. He added that direct tax collection target of Rs5.70 lakh crore for the current fiscal, was achievable.