Full economic recovery depends on global factors: Pranab

Even though India has weathered the global financial crisis better than most other countries, a meaningful recovery depends on how quickly some key economies turn the corner, finance minister Pranab Mukherjee said today.

"By merely generating demand in the domestic economy and exploring markets for exports, it is not possible to have a sustainable recovery," Mukherjee told the annual Hindustan Times Leadership summit at the Taj Palace Hotel in New Delhi.

''The developed economies of Europe, Japan and the US account for 62 per cent of our exports. A key export sector is information technology. But it has also been hit, because outsourcing has been reduced badly,'' he said.

"Recovery is halting, slow - whether it will be steady I cannot say right now. I still have to wait for the figures to come," said the finance minister, adding, ''Third quarter and fourth quarter - I am confident. We will reach the targets.''

Mukherjee said the road ahead for the Indian economy was long and arduous, with many hindrances. "We have to go a long way. The journey won't be easy," he said.

The finance minister said there were several forecasts on India's gross domestic product growth, including those by the prime minister's economic advisory council and the Reserve Bank of India.