Economy to grow by 7.5% in 2009-10: PM

Prime Minister Manmohan Singh today said the economy is expected to register a growth rate of 7.5 per cent in this financial year (2009-10), up from 6.7 per cent a year ago.

"In the current financial year, the growth rate of economy is likely to be 7.5 per cent," he said while addressing a meeting of the Chief Ministers on price rise here.

The economy, which had been growing at over 9 per cent, slipped to 6.7 per cent in 2008-09 following the impact of the global economic crisis triggered by the fall of investment bank Lehman Brothers in September 2008.

Driven by stimulus packages and easing of monetary policy, India's economy during the second quarter (July- September 2009-10) expanded by 7.9 per cent, much more than anticipated by any analyst or thinktank.

The RBI in its recent review of the monetary policy too projected a growth rate of 7.5 per cent for the current fiscal.

Finance Minister Pranab Mukherjee, while presenting the Mid-Year Review of the Economy had said that economy could grow in excess of 7.75 per cent despite the impact of drought and floods on agriculture output.