Mumbai: India could maintain an 8.5% growth in 2010-11 despite the euro zone problems, provided there is a normal summer monsoon, finance minister Pranab Mukherjee said on Tuesday.
The minister also said slow growth in India’s private consumption is expected to reverse in fiscal year 2010-11, if the monsoon panned out as expected.
Uncertainties in global markets, especially in the euro zone, may have some adverse impact on the Indian market in the form of volatility, but there is no cause for worry, the minister said.
“Given the uncertainties in the global market, especially in Europe, there may be some adverse impact on the market...(however) there is no need to press the panic button,” Mukherjee said.
Indian policymakers have already taken appropriate measures and there is no need to panic, he said.
On the possibility of a fuel price hike, Mukherjee said a decision would be taken shortly after discussing the matter in the Cabinet.
“We have received the recommendations of the Kirit Parekh Committee (which has suggested freeing fuel prices from government control),” Mukherjee said.