Thaindian News

New Delhi, Dec 23 (ANI): Finance Minister Pranab Mukherjee on Wednesday said that despite price rise and fiscal consolidations remained the areas of worry, the economy could grow by 7.75 percent during the current fiscal year.

Addressing the 104th annual session of the industry chamber PHDCI, Pranab Mukherjee said, “The Mid Year Review projected a growth rate of 7.75 per cent (for 2009-10), but it would be more appropriate to say 7.5 to 8 per cent.”

The Review tabled last week in Parliament by Mukherjee had pointed out that the growth rate during the year could exceed the projection of 7.75 percent, an increase from 6.7 percent during 2008-2009.

Pranab Mukherjee appeared confident of achieving the growth rate of 9 to 10 percent. He said, “the growth rate of 9-10 percent, which we have dreamt for a very long period of time is now within our reach and we have to achieve it.”

The Indian economy was expanding at 9 percent before being hit by the economic slowdown bringing the growth rate to 6.7 percent during 2008-2009.

Pranab Mukherjee said the prime areas of concern for the Central Government at present is to handle the price rise and the increasing fiscal deficit.

An optimistic Mukherjee added that a growth of 4 percent in the agriculture sector would help to achieve a growth of 9-10 percent. He said the industry was showing signs of improvement as it posted a 10 percent growth rate in October.

Responding to questions on pulling out the measures meant to combat the impact of the global financial slowdown, the Finance Minister said, “Wait till the Budget (in February).”

Referring to the Direct Tax Code, Mukherjee said there were nine areas of concern and the Ministry would take inputs from the various agencies, including industry chambers, before finalising the Code, which will replace the Income Tax Act, 1961. (ANI)