Strong fundamentals to help India revert to high growth: FM
Pinning hopes on revival of business confidence and strong fundamentals, finance minister Pranab Mukherjee today said the Indian economy would return to the pre-global crisis growth path in the coming years.business Updated: May 05, 2012 11:15 IST
Pinning hopes on revival of business confidence and strong fundamentals, finance minister Pranab Mukherjee on Saturday said the Indian economy would return to the pre-global crisis growth path in the coming years.
"...strong fundamentals of our economy will help us return to a sustained growth path of pre-2008 crisis level in the coming years," he said while addressing a press conference after taking over as chairman of the Board of Governors of the Asian Development Bank (ADB).
India was growing at over 9% before the global financial crisis of 2008 pulled down the growth rate to 6.7% in 2008-09. India has projected a growth rate of 7.6% in 2012-13, up from 6.9% recorded in the previous fiscal.
Mukherjee said that despite the impact of euro-zone debt crisis on the economy, "India has continued to be a front runner in terms of economic growth in the region, which underlines the resilience of the Indian economy.
"The Indian economy is more resilient than many other nations to withstand this fresh round of global economic turmoil, as the bulk of India’s GDP is domestic demand driven," he added.
Mukherjee said the crisis had impacted the Indian economy through low growth, weak business sentiment, declining capital inflows and exchange rate and stock market volatility with attendant implication for investor confidence.