Govt will try to achieve 7.5-8 pc growth next fiscal: FM

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SME Times News Bureau | 23 Feb, 2012
The government will endeavour to raise the economic growth rate to 7.5-8 percent in the next fiscal from about 7 percent currently, Finance Minister Pranab Mukherjee said.

"PMEAC (Prime Minister's Economic Advisory Council) has pegged growth over 7 percent this year and 7.5-8 percent for next year. We will try to achieve that growth rate," he said while talking to reporters in New Delhi.

The PMEAC in its review of economy released yesterday had projected a growth rate of 7.5-8 percent for 2012-13. For the current fiscal, the Council pegged the growth rate at 7.1 percent, marginally more than 6.9 percent projected by the Central Statistical Organisation (CSO).

The economy grew by 8.4 percent in 2010-11. Mukherjee is expected to announce steps to boost the economy in the Budget for 2012-13 to be presented in the Lok Sabha on March 16.

Referring to the concerns expressed by PMEAC on widening Current Account Deficit (CAD), Mukherjee said, "CAD is a matter of concern. I think we will be able to manage CAD." "Our export basket and destination are getting diversified, with that exports should get a boost", he added.

Making a case for reducing CAD, which reflects the gap in inflow and outflow of foreign exchange, PMEAC had said, "it will... be judicious to try and limit the CAD...especially as long as international financial markets continue to be adversely impacted by the troubles in the Eurozone."

Pointing out that the CAD during 2011-12 was likely to be 3.6 percent of GDP, the Council had said that efforts were needed to bring it down to 2-2.5 percent.