Growth will be more than 7.2%, says FM

Finance Minister Pranab Mukherjee today said economic growth for the current financial year would be higher than the advance estimate forecast of 7.2 per cent. The advance estimates released by the Central Statistical Organisation (CSO) on Monday pegged economic growth at 7.2 per cent, lower than the 7.75 per cent estimated by the finance ministry in its mid-term review released earlier.

Such a forecast is in line with that of the Reserve Bank of India (RBI) which has pegged economic growth at 7.5 per cent in its third quarter monetary policy review. The Centre for Monitoring Indian Economy (CMIE) has projected the GDP growth at 7.75 per cent for the current financial year.

“The economic survey 2008-09 had indicated that the upper band of growth in real GDP for the 2009-10 will be around 7.75 per cent…. I expect the growth to be higher than what has been estimated by CSO… last year also this was the case,” said Mukherjee at a meeting of the Colombo Plan, which is a group of Asian countries aimed at fostering economic and social development in South and Southeast Asia.

CSO had estimated growth to be at 6.5 per cent for 2008-09 in its advance estimates, which were later revised to 6.7 per cent.

Mukherjee added even a 7.2 per cent growth excluded optimistic prospects for the Indian economy, when compared to the global economic environment.