M A I N   N E W S

9 pc growth rate soon, says Pranab

on higher growth curve Recovery was yet to 'attain the pre-2008 momentum' Means would be found to cross over to double-digit growth barrier in the coming year or two. The manufacturing sector has been showing buoyancy reminiscent of the pre-slowdown years Economic recovery in India had been driven by increased investment and high private consumptions

New Delhi, November 14
India will soon grow at 9 per cent annually and may even move to double-digits expansion in the two years, if the government is able to address reforms and address weaknesses, Finance Minister Pranab Mukherjee said today.

Mukherjee told the 26th India Economic Summit, co-organised by the Davos, Switzerland-based World Economic Forum (WEF) and the Confederation of Indian Industry (CII) that the recovery was yet to 'attain the pre-2008 momentum' given the industrial output numbers.

“The challenge now is to quickly revert to the high-growth path of 9 per cent plus,” the finance minister said, adding means would be found to cross over to double-digit growth barrier in the coming year or two.

'The manufacturing sector has been showing buoyancy reminiscent of the pre-slowdown years, though some concerns on its growth momentum have emerged in the last month or two,' Mukherjee said.

Industrial output growth slowed to 6.9 per cent in August and declined further to 4.4 per cent in September from 15.2 per cent in July. However, Mukherjee said India's macro-economic outlook was strong and the country would register robust growth in the coming years.

“Savings and investment rates have reached levels that even 10 years ago would have been dismissed as a pipe dream for India. On this important dimension, India is now completely a part of the world's fast-growing economies,” he said.

The finance minister said the government was taking pro-active measures to fix the problems and weaknesses in the economy. “We are looking to address the weaknesses in our systems, structures and institutions at different levels of governance.” Mukherjee said economic recovery in India had been driven by increased investment and high private consumptions. He pointed out that spending on infrastructure has increased to 9 per cent to the GDP in the first three years of the 11th Plan period (2007-12) from 4-5 per cent in the previous plan period. “The aspirations for the next plan period are even more ambitious,” he added. — IANS