Pranab hopeful but worried

Finance minister Pranab Mukherjee on Monday said food prices have shown signs of easing in recent weeks even as he indicated that overall inflation would continue to remain at elevated levels in the near future.

Finance minister Pranab Mukherjee on Monday said food prices have shown signs of easing in recent weeks even as he indicated that overall inflation would continue to remain at elevated levels in the near future.

HT Image

Mukherjee, who was speaking at a function organised by the All India Management Association (AIMA), said that private investment demand and strong farm sector growth would catapult India's gross domestic product (GDP) growth to 9 per cent in 2011-12.

"I am afraid, we may have to deal with it (high inflation) for some more time. Inflationary pressures on food prices have come down," Mukherjee said.

The finance minister said the Indian economy was poised to clock double-digit growth in the coming years but it needs to be made more broad-based.

The country’s gross domestic product will grow at 7.2 per cent in 2009-10, according to estimates by the Central Statistical Organisation (CSO) last month.

Growth of the Indian economy slowed to 6.7 per cent in 2008-09 after growing at close to 9 per cent for four straight years before the meltdown hit home.

"The benefits of economic growth will have to percolate the marginalised and vulnerable sections of society," Mukherjee said.