Shrugging off concerns in the stock markets over the economy, finance minister Pranab Mukherjee said on Wednesday that India was well on its way to achieving the government forecast of 8.5% growth in gross domestic product (GDP) for 2010-11. But rising prices and volatility in inflows from foreign institutional investors (FIIs) remain key worries, he added.
“The overall performance (of the economy) has been satisfactory,” finance minister Pranab Mukherjee said. “While the stock market has its own mind and it takes cues from developments all around, I want to take this opportunity to reiterate the strong fundamentals of the economy.”
The broad-based GDP growth at 8.9% in the first half of the fiscal has taken the economy back to the pre-crisis growth momentum, he said.
Both savings and investment growth have shown strong recovery in 2009-10 over the preceding year. “This augurs well for sustaining high growth of the economy in the medium- to-long term,” he added.
The Sensex has lost 5.9 % in the last five trading sessions with investors resorting to hectic selling. Data released by the Comptroller General of Accounts suggests that gross tax collection for April to December period of the current fiscal has increased by 27%, year-on-year, to Rs 5,27,782.0 crore. Customs and excise duties collections registered a growth of 66% and 37% respectively.