PM's economic council expects 7% GDP growth in FY10

Sharing the optimism of Prime Minister Manmohan Singh, his advisory council today projected a growth rate of 7 per cent for the current fiscal.

"I think it should be around 7 per cent," Prime Minister's Economic Advisory Council (PMEAC) Chairman Suresh Tendulkar told reporters here on the sidelines of a function organised by the Competition Commission of India (CCI).

Although the Reserve Bank of India in its annual monetary policy in April forecast a growth rate of around 6 per cent for the current fiscal, Prime Minister Singh felt otherwise, saying the growth rate would be at least 7 per cent.

"We will maintain at least 7 per cent growth rate. In the short run, we can't do better (because of global economic crisis) but this is not good enough," Singh said in Parliament, adding that with efforts the country can revert to 8-9 per cent economic growth.

The economic growth during 2008-09 dipped to 6.7 per cent from 9 per cent a year ago, mainly due to the impact of the global financial meltdown on the country.

Having recorded 6.7 per cent growth rate in the previous fiscal, an otherwise difficult year for the world economy, Finance Minister Pranab Mukherjee had said India continued to be the "second fastest growing economy in the world".