New Delhi: India’s government still expects the economy to expand by around 7 % this fiscal year and had anticipated growth below market expectations in the December quarter, minister of state for finance said on Friday.
Pawan Kumar Bansal said the central bank and the government would be responsive to the emerging situation.
Data showed the economy grew a slower than expected 5.3% in the December quarter from a year earlier, slowing sharply from the previous quarter’s 7.6% as the global economic crisis cut demand and exports.
“It is not much off the mark. It is as per our anticipation. I suppose it should do better in the last quarter. We have faced the impact of the global meltdown in this (Dec) quarter,” Bansal told reporters.
Asked whether growth could still touch 7% for 2008/09, Bansal said: “I suppose it should be in that vicinity.”