Economy to grow at 7.5-8% this fiscal: Basu
Amid concerns of a global slowdown, Chief Economic Advisor Kaushik Basu today said the Indian economy was expected to witness a growth rate between 7.5% and 8% this fiscal.
"There is slowdown across the world...Our growth rate would be 7.5% to 8% [this fiscal] ...India is one of the slowest slowdown," he said at ADB-India partnership silver jubilee celebrations here.
In the first quarter of the current fiscal, the Indian economy posted a growth rate of 7.7%.
"We do expect some slowdown in exports in the second half of this year. Foreign direct investment for this year look very, very good," he said.
Long-run drivers of growth are remarkably good, he said.
Earlier in the day, Finance Minister Pranab Mukherjee said that in the medium to long-term, India remained firmly on a high GDP growth path of 8.5-9%.
"We, however, need to be alert and respond to emerging challenges and concerns, in a timely manner as we make efforts to achieve our potential as a young fast growing nation," he said.
Chief Economic Advisor Kaushik Basu said partly attributed rising inflation to high wages. In India, the biggest inflation in the last one-and-a-half years is taking place in the labour-intensive sector, Basu said.
"This is a sign of rising cost of labour and also we have data now that wages are inflating faster than good and services," he said.