Allaying apprehensions of high oil prices impacting growth, Finance Minister Pranab Mukherjee today exuded confidence that the economy would return to nine per cent growth in 2011-12.
“We can and we shall (achieve nine per cent GDP growth),” Mukherjee said, while speaking at a debate on the General Budget in the Lok Sabha. “In the year which is coming to an end, (GDP) is 8.6 per cent...therefore, if I project that GDP growth will be 9 per cent, the figure is credible,” he said.
Crude prices of over $100 a barrel, primarily driven by the political unrest in West Asia (Egypt and Libya) have become a concern for the government. The Economic Survey had projected real GDP would grow by 9 per cent (+/-0.25) in 2011-12. According to data provided by the Central Statistical Organisation (CSO) earlier, the economy was estimated to grow by 8.6 per cent in the current financial year. However, CSO data in the third quarter (October-December) suggest the country's GDP grew at 8.2 per cent.
The country had seen a growth of above 9 per cent for three consecutive years starting 2005-06, before the global financial meltdown brought it down to 6.8 per cent in 2008-09. In order to help the industry tide over the impact of the crisis, the government came up with three stimulus packages, giving up about Rs 1.86 lakh crore in revenue. In the last financial year, the Indian economy registered a growth of 8 per cent.
