Finance Minister Pranab Mukherjee on Friday said the various measures announced in Budget 2010-11 would revive private investment and put the economy back on the 9 per cent growth path.
“I am optimistic that the measures I have outlined in this year’s budget will revive private investment and put the economy back on the growth path of 9 per cent per annum,” Mukherjee said a function of Small Industries Development Bank of India (SIDBI).
India’s economic growth slowed to 6.7 per cent in 2008-09 after growing at close to 9 per cent for four straight years, before a financial crisis in the United States roiled the global financial economy.
“We expect the economy to grow by 7.2 per cent in 2009-10, which is impressive by global standards,” the finance minister said.
“I am optimistic that the growth rate will climb back to 8.25-8.75 per cent in 2010-11.”
On Thursday, Prime Minister Manmohan Singh had exuded confidence that the economy can get back to the 9 per cent growth track by the end of the Eleventh Five-Year Plan (2007-2012) period and do even better thereafter.
“The fast-paced recovery of the Indian economy underscores the effectiveness of the government’s policy response in the wake of this financial crisis,” the finance minister said.
“The economy weathered the global credit storm much better than expected,” said Rajeev Malik of Macquarie Securities.