[1]The finance minister, Mr Pranab Mukherjee, on Wednesday exuded confidence that the economy will surpass the IMF projections of 8.8 per cent in 2010 and 8.4 per cent in the following year. He admitted the benefits of faster economic expansion is yet to percolate down to the poor.
For the 2009-10 fiscal, Mr Mukherjee said, he expects the economy to grow by 7.2 per cent, the same as estimated by the Central Statistical Organisation in its advance estimate.
The final GDP numbers for FY10 will be released on Friday.
“This achievement is particularly significant, considering that we had an unfavourable monsoon, which has dampened the growth of the farm sector. I expect strong growth in the current fiscal that stands to benefit from further improvement in business confidence,” Mr Mukherjee added.
The planning commission, deputy chairman, Dr Montek Singh Ahluwalia also said he does not think that 7.2 per cent growth projection would have to revised downwards.
According to data released on Wednesday, the industrial growth stood at 10.4 per cent during 2009-10, which analysts say will ensure 7.2 per cent growth.
“Mr Mukherjee said in the post-liberalisation phase, the government realised that despite consistently achieving a high level of economic growth, the benefits do not percolate (down) to the the masses,” he said.
The finance minister also admitted that irrespective of the recent debate on the number of persons below the poverty line, it is a fact that a significant chunk of our population has yet to benefit from the growth story.
“We know that approach to poverty reduction is necessary, but not a sufficient condition to eradicate poverty and derivation. It is a complex process and needs multi-pronged efforts.” The GDP growth slowed down to 6.7 per cent in 2008-09 after hit by the global financial meltdown.
— PTI
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