Finance Minister Pranab Mukherjee today said the first quarter economic growth of 8.8 per cent this fiscal is reassuring and exuded confidence that the economy will expand by 9 per cent next fiscal.
"The existing 8.8 per cent growth is reassuring. In 2011 -12, India's GDP growth is expected at 9 per cent," Mukherjee said at an NDTV Profit Business Leaders' Awards function here.
However, to achieve a higher economic growth rate, timely policy action and better corporate governance are a must, he said.
"Timely policy actions and better corporate governance are needed to accelerate growth momentum," the Finance Minister said.
Indian economy expanded by 8.8 per cent in the first quarter of this fiscal against 6 per cent a year ago.
Some industry chambers are hopeful that economy will grow by around 9 per cent this fiscal itself.
Indian economic growth had slowed down to 6.7 per cent during 2008-09 on account of the global financial meltdown.
It slightly recovered to 7.4 per cent last fiscal after the government gave a stimulus to the industry.
The first quarter growth this fiscal is encouraging, particularly since the government partially withdrew the stimulus by raising excise duty by 2 per cent to 10 per cent.
