India can grow at 8-9%: FM

India has the capacity to grow at eight to nine per cent annually and good governance would make economic expansion "more exuberant", Finance Minister Arun Jaitley said on Wednesday.

"If we had followed the best practices and displayed the highest standards of good governance, probably our (levels) of growth would have been more exuberant," he said.

Amid investments slowing and allegations of corruption in allocation of natural resources, economic growth had slumped to below five per cent in 2012-13 and 2013-14.

The economy, however, showed signs of rival as the gross domestic product clocked 5.7 per cent growth in the April-June period of the current financial year, highest in the past 10 quarters.

The Bharatiya Janata Party led-National Democratic Alliance government, which assumed power in May, had fought the election on the promise of providing good governance to the country.

A recent World Bank report projects national economy to expand by 5.6 per cent this financial year as reforms gain momentum and the growth is expected to accelerate as proposed measures such as the Goods and Services Tax provide a boost to manufacturing sector.