FM sees revival, 6.7% growth

FM sees revival, 6.7% growth
The Economic Times, July 30, 2009, Page 11

Our Bureau NEW DELHI

FINANCE minister Pranab Mukherjee said on Wednesday he expects the economy to grow by 6.7% this fiscal as the economic downturn has been arrested and the manufacturing sector is witnessing a revival.

“Downturn has been arrested...It is possible to maintain the growth momentum ...(and) achieve the desired level of growth”, the minister said while winding up the debate on the Finance Bill in Rajya Sabha, which returned the Bill, completing the budget exercise for 2009-10.

Noting that signals of a pickup are visible in sectors like steel, cement and construction, Mr Mukherjee said, “We have ended 2008-09 at 6.7%. I do hope we will be able to maintain this level of growth (in 2009-10).”

The Reserve Bank of India on Tuesday projected a growth rate of 6% with an upward bias. Mr Mukherjee said even though the central bank’s projection was conservative, it upgraded the outlook of the economy.

Even global agencies like the International Monetary Fund (IMF) were of the opinion that the Indian economy would grow at 6%-plus, the minister said.

On concerns raised by the members on black money stashed abroad, he said the government was in the process of amending the double taxation treaties with almost 100 countries to provide for a legal framework for exchange of information on the menace. He also warned that if builders do not pass on the benefit of tax holiday to consumers, the same may not be extended in the future.