FM sees high growth again

27 May 2009

In his address to the media on May 27, newly-appointed finance minister Pranab Mukherjee said he was confident that the country would go back to the high gross domestic product (GDP) growth levels seen earlier.

The Indian economy saw high-charged growth during years 2005 to 2007 when it grew at more than 9% each years. However, after the financial crisis that has engulfed the world hit home, financial year 2008-09 - whose GDP growth is not out yet - is expected to be on the lower side, with forecasts ranging between 5% and 7%. Economies of many developed countries are expected to show negative growth in 2008.

''A silver lining is that Indian economy has shown its resilience and our policy proved to be correct - when the developed economies all over the world collapsed, we maintained some level of growth,'' Mukherjee said.

''I am quite confident that we will be able to maintain a high level of growth and right now, as we speak, India is the second fastest-growing economy in the world.''Finance Minister Pranab Mukherjee, in an interview to CNBC TV18's, said that although maintaining fiscal and growth prudence were both priorities for the government, in current times, growth had to assume higher significance (See: Pranab Mukherjee hints at higher deficit to boost economy).

Speaking exclusively to CNBC-TV18's Udayan Mukherjee after taking over as finance minister, Mukherjee said that the government would be able to pass the Budget by the end of July.