Indian economy to cross 8.9 percent in September quarter

November 30th, 2010 - 6:24 pm ICT by ANI  

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New Delhi, Nov.30 (ANI): Union Finance Minister Pranab
Mukherjee said today that he was confident of the economy crossing 8.5 percent
growth target in the current fiscal year.

Interacting with mediapersons outside Parliament, Mukherjee
said the economy grew at 8.9 percent, more than expected in the quarter through
September.

“Amidst all depressing news, one good news is there that
second quarter GDP growth has been 8.9 percent. And they have revised the first
quarter also to 8.9 percent. That means we may be confident that the GDP growth
at the end of the year will not be less than 8.7 to 8.75 percent, which we
projected,”

“I always go by conservative estimate. International Monetary
Fund (IMF) estimate, as I mentioned earlier, have already projected growth to
be more than 9 percent,” he added.

India’s economy grew a faster-than-expected 8.9 percent in
the September quarter from a year earlier, data released on Tuesday showed. The
median forecast in a Reuters’ poll was for an annual rise of 8.3 percent.

The GDP growth for the April-June quarter was revised
upwards to 8.9 percent from the provisional figure of 8.8 percent.

Economy grew more than expected in September quarter,
boosted by farm output and manufacturing, putting pressure on the Reserve Bank
of India (RBI) to tighten monetary policy although a rate increase next month
still looks unlikely.

The strong GDP growth comes despite the RBI raising key
rates by 150 and 200 basis points respectively since mid-March to anchor
inflationary expectations. (ANI)

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