India’s GDP growth pegged at 7.5% PANJIM, Jan 17 (PTI): The leading economic think-tank CMIE today pegged the economic growth at 7.5 per cent for the current fiscal on the back of strong industrial growth— slightly lower than the projections of Finance Minister Pranab Mukherjee.
“Growth of 7.5 per cent possible is during 2009-10 as manufacturing is doing well,” Centre for Monitoring Indian Economy (CMIE) chairman SA Dave told PTI today.
Dave further said the GDP could grow higher in the next financial year. Recently, the Finance Minister pegged the GDP growth at 7.75 percent for this fiscal. The Government, in its mid-year review, too had projected a growth of around 7.25-7.75 percent for the fiscal.
On Friday, the multilateral lending agency Asian Development Bank had said India was poised for a strong recovery this year and urged policymakers to address rising inflation and widening fiscal deficit to insulate itself against future shocks.
“India’s economy is poised for a solid recovery in 2010 as the global financial crisis fades, but policymakers need to address inflation and the widening fiscal deficit to buffer it against the impact of future global shocks,” ADB said. Inflation has risen to 7.31 per cent in December against 4.78 per cent in the previous month while fiscal deficit is projected at 6.8 per cent of GDP for the current fiscal.
Impacted by the global financial crisis, the economy grew by 6.7 per cent in the last fiscal and by 6.1 per cent in the first quarter of the current fiscal. However, beating all the projections, the economy registered a smart growth of 7.9 per cent in the second quarter of the current fiscal.