New Delhi: The raft of fiscal stimulus steps taken by the government since late 2008 are now yielding results, Union finance minister Pranab Mukherjee told Parliament on Wednesday.
Mukherjee also said the country was aiming to return to higher growth path as soon as possible.
Asia’s third-largest economy expanded by 6.7% in 2008-09, sharply slower than 9% or more in previous three years, as high borrowing costs and then the global economic crisis hit.
The government expects 7% growth in fiscal 2009-10.
The minister said the country’s infrastructure sector requires more investment.
India is ready with a contingency plan if monsoon rains remain below normal and there is no need “to press the panic button”, he said.