Here’s the news from the horse’s mouth. The Indian economy will continue to improve. It will grow at 6 per cent — or even higher — in each of the remaining three quarters of the current financial year.
Speaking at the annual general meeting of the Bengal Chamber of Commerce and Industry in Kolkata on Wednesday, Finance Minister Pranab Mukherjee said: “GDP growth in the second and subsequent quarters will surely be in excess of 6 per cent. I cannot say whether it will be 6.5 per cent or 6.7 per cent at this point in time.” (GDP stands for gross domestic product - the value of goods and services produced in a country).
The Indian economy grew at 6.1 per cent in the first quarter (April-June). It had grown at 6.7 per cent last year, when it retained its position as the second-fastest growing large economy in the world — after China — for fourth straight year.
The Asian Development Bank had on Tuesday raised its projection for India’s growth this year from 5 per cent to 6 per cent.
The finance minister added that the Reserve Bank of India should refrain from raising interest rates so as to allow the growth to gather momentum.
But a full recovery (read: a return to the 9 per cent growth trajectory of 2004-05 to 2007-08) will still take some time, Mukherjee said.