Economy likely to grow by 8% next fiscal: Plan panel
New Delhi: India's economic growth rate is expected to accelerate to eight per cent in the next fiscal from 6.3 per cent projected for the current financial year, the Planning Commission has said.
The Commission in its recent assessment of the economy
also expects economic growth to go up to nine per cent in
2011-12, and further to 10 per cent in 2014-15.
These assumptions were made by the Planning Commission
while projecting the state of government finances before the
Eleventh Finance Commission recently.
The global slowdown has pulled down India's economic
growth to 6.7 per cent during 2008-09 from about nine per cent
a year ago. During the current fiscal, as per the Planning
Commission estimates, growth rate may fall to 6.3 per cent.
In the first quarter of this fiscal, economy expanded by
6.1 per cent, and it is expected that growth rate would
decelerate further in the second quarter before picking up.
In order to combat the impact of global crisis on the
economy, the government and the Reserve Bank had come up with
a host of stimulus measures, including tax cuts and making
available liquidity to the cash-starved industries.
However, stimulus measures, comprising a cut in taxes and
increase in plan expenditure, to boost up the economy widened
the fiscal deficit to 6.2 per cent last year.
Bureau Report