India confident of going back to 8-9 pct growth soon: Patil

NEW DELHI Mon Mar 12, 2012 3:39pm IST

1 of 2. Workers thrash paddy crop at Motte Majra village in Punjab October 12, 2011.

Credit: Reuters/Ajay Verma/Files

NEW DELHI (Reuters) - India is confident of steering the economy back to a high growth path of 8-9 percent soon as its economic fundamentals remain robust, bouncing from a slower growth of about 7 percent in the current fiscal year, President Pratibha Devisingh Patil said.

"The long-term fundamentals of the Indian economy remain robust," Patil told lawmakers on Monday, adding the government plans to achieve a 9 percent annual growth target in the five-year plan period ending on March 31, 2017.

The economy grew more than 9 percent for three years until 2007/08, and at an annual 8.4 percent in the last two fiscal years.

Finance Minister Pranab Mukherjee, who will present the budget on Friday, is expected to set a target of 7.5 percent to 8 percent economic growth for the 2012/13 fiscal year beginning on April 1.

After last year's budget debacle, when Mukherjee's projections for growth, asset sales and the fiscal deficit proved wildly optimistic, the pressure is on the government for a more realistic set of targets.

"Efforts are underway to build political consensus on the Goods and Services Tax, which will give a major boost to the economy by rationalising indirect taxes and giving full input credit," Patil said.

The main opposition Bharatiya Janata Party has indicated support on non-controversial decisions, such as tweaking of tax exemptions for companies and moves to curb illicit fund flows.

Patil said the government aims to achieve an annual growth of 4 percent in the farm sector in the next five years and said it was confident of achieving the farm credit target of 4.75 trillion rupees credit in the current fiscal year.

She said India expects to increase its merchandise exports to $500 billion by 2013/14, from close to $300 billion targeted in the current fiscal year.

(Additional reporting by Nigam Prusty; editing by Malini Menon)

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

Pricing Controls

REUTERS SHOWCASE

India-China Relations

India-China Relations

India and China look to put knotty relations on new footing.  Full Article 

Importing Iron Ore

Importing Iron Ore

As mining curbs bite, India offers market to glut-hit iron ore.  Full Article 

Lower Output

Lower Output

IOC cuts refinery output as rains hit fuel demand - source.  Full Article 

Drug Approval

Drug Approval

Epirus, Ranbaxy win India approval for arthritis drug copy.  Full Article 

Farming and Technology

Farming and Technology

Climate smart farmers get tech savvy to save India's bread basket.  Full Article 

Rajan Speaks

Rajan Speaks

RBI chief Rajan says limiting reliance on foreign debt.  Full Article 

India-Vietnam Ties

India-Vietnam Ties

India tightens Vietnam defence, oil ties ahead of China Xi's visit.  Full Article 

Debt & Equity Deal

Debt & Equity Deal

KKR to lend $175 million to GMR Infrastructure - source.  Full Article 

Preparing for IPO

Preparing for IPO

Alibaba boosts IPO as demand strengthens.  Full Article 

Reuters India Mobile

Reuters India Mobile

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