Pranab won't challenge IMF growth forecast

WASHINGTON Wed Jun 23, 2010 12:55am IST

Finance Minister Pranab Mukherjee is seen at the World Economic Forum in New Delhi in this November 10, 2009 file photo. Mukherjee said on Tuesday he will not challenge the International Monetary Fund's prediction that India's economy will grow 8.8 percent this year, despite his ministry's own forecast of 8.5 percent growth. REUTERS/B Mathur/Files

Finance Minister Pranab Mukherjee is seen at the World Economic Forum in New Delhi in this November 10, 2009 file photo. Mukherjee said on Tuesday he will not challenge the International Monetary Fund's prediction that India's economy will grow 8.8 percent this year, despite his ministry's own forecast of 8.5 percent growth.

Credit: Reuters/B Mathur/Files

Related Topics

Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

WASHINGTON (Reuters) - Finance Minister Pranab Mukherjee said on Tuesday he will not challenge the International Monetary Fund's prediction that India's economy will grow 8.8 percent this year, despite his ministry's own forecast of 8.5 percent growth.

Mukherjee, speaking to the U.S.-India CEO Forum here, said his view follows recent data showing that gross domestic product in the January-March quarter grew 8.6 percent -- the fastest rate in six months.

"This year, my ministry has predicted a growth rate of 8.5 percent. I notice that the IMF has challenged our prediction. For once, however, I am not going to contest the IMF assessment. The IMF believes that the Indian economy will grow at 8.8 percent."

Earlier this month, the finance ministry's chief economic adviser forecast India's growth in the quarter ended June 30 at 8.9 percent. In the fiscal year ended March 31, India's economy grew 7.4 percent.

Mukherjee attributed the strong performance of India's economy through the financial crisis in part to the country's "dynamic" corporate sector and to high levels of savings and investment.

He said India was saving and investing about 34 percent of GDP, compared with around 30 percent prior to 2003. "Data we have received for the last couple of months suggest that this is still rising," he added.

Mukherjee said these investment levels, along with more than $850 billion in needed infrastructure investment, gave him optimism that India can break into double-digit GDP growth in the next five years.

The Indian finance minister will meet with U.S. Treasury Secretary Timothy Geithner later on Tuesday.

(Reporting by David Lawder; Editing by Dan Grebler)

(For more news on Reuters India, click in.reuters.com)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Election 2014

Election 2014

Kashmiris wary as Modi challenges for power.  Full Article 

Facebook's Performance

Facebook's Performance

Facebook Q1 revenue grows 72 percent on rising mobile ads.  Full Article 

Earnings Season

Earnings Season

Bharti Infratel Q4 net profit jumps 64 percent.  Full Article 

Monsoon Forecast

Monsoon Forecast

South Asia monsoon seen below-average to average in 2014 - WMO.  Full Article 

Solar Dispute

Solar Dispute

Green groups urge U.S. to drop solar trade case against India.  Full Article 

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

Rice Exports

Rice Exports

India may cede top rice exporter spot under Southeast Asian price onslaught.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage