'Economy to soon revert to 9% growth'
The Indian economy would soon return to a growth trajectory to 9% and the challenge was to hit a double-digit growth path in the next couple of years, finance minister Pranab Mukherjee said on Sunday. HT reports.business Updated: Nov 14, 2010 21:21 IST
The Indian economy would soon return to a growth trajectory to 9% and the challenge was to hit a double-digit growth path in the next couple of years, finance minister Pranab Mukherjee said on Sunday.
"In the short term, it is reasonable to expect that the economy will go back to the robust growth path of around 9% average that it was on before the global crisis slowed (it) down in 2008," Mukherjee said at the India Economic Summit organised by the World Economic Forum.
There has been a revival in investment and private consumption demand, though the recovery is yet to attain the pre-2008 momentum, he said.
India’s exports have also recorded impressive growth since November last year and the favourable capital market conditions with improvement in capital flows and business sentiments are also encouraging, the finance minister said.
"The manufacturing sector has been showing buoyancy reminiscent of the pre-slowdown years, though some concerns on its growth momentum have emerged in the last month or two," Mukherjee said.
Industrial output growth almost halved to 4.4% in September—the lowest in 16 months. "The challenge now is to quickly revert to the high GDP growth path of nine percent plus and even find the means to cross the double-digit growth barrier in the coming year or two," he said.