New Delhi: India’s economy is likely to slow this fiscal year but growth of 7-8% will still be among the best given the financial crisis and a slowdown in major nations, the finance ministry said in a report on Monday.
Prepared for a conference of financial editors, the report said the global growth outlook remained uncertain but the prospects for India’s expansion still looked fairly robust.
“The circumstances continue to be largely favourable for sustained, rapid and more inclusive growth of the economy,” it said.
Indian policymakers are grappling with the impact of the global financial crisis on the broader economy and have taken several steps in recent weeks, including sharp interest rate and banks’ reserve requirement cuts, to protect the economy.
Prime Minister Manmohan Singh said last week that despite an adverse international environment India could sustain growth of about 8% in the fiscal year to end March.