The Hindu : Business : GDP growth satisfactory, says Pranab Mukherjee

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Tuesday, Feb 08, 2011
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GDP growth satisfactory, says Pranab Mukherjee

Special Correspondent

NEW DELHI: Amid rising concerns about rising inflation and trade imbalance, Union Finance Minister Pranab Mukherjee on Monday said the 8.6 per cent economic growth estimates released for the current fiscal were satisfactory.

“An 8.6 per cent is quite encouraging despite all these difficulties. Now the other issue is inflation, trade imbalance and these are to be addressed,” Mr. Mukherjee told reporters here. He said despite challenges it is quite encouraging that it (GDP) is not deteriorating.

In the July-September quarter this fiscal, the Current Account deficit (CAD) surged by 72 per cent to $15.8 billion from $9.2 billion in the same period in the previous year due to higher imports. The CAD, representing the difference in inflows and outflows of foreign exchange, barring capital movements, stood at 2.9 per cent of the GDP last fiscal.

Chief Economic Advisor Kaushik Basu said a 9 per cent economic expansion for the next financial year was well within target. “The prospects for the world as a whole are looking better but still there are uncertain clouds. In that scenario growth of 8.6 per cent is absolutely remarkable. So the 9 per cent which we are aiming for next year is now looking well within target,” Mr. Basu told reporters.

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