7% GDP in 2008-09, more to be done next fiscal: Montek

7% GDP in 2008-09, more to be done next fiscal: Montek

Gurgaon: After the Rs30,700-crore fiscal stimulus package, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said that though the economy would grow at 7% in 2008-09, more steps would be needed to retain the momentum in the next fiscal.

“I think we will have 7% (GDP growth rate) this year, which is pretty good," singh said on the sidelines of a function to inaugurate a blood bank at the Artemis Health Institute here.

Referring to the growth prospects in the next fiscal, Ahluwalia said: “We have to do something next year also, that is post-election. We will have plans ready to have strong stimulation."

He said that as the Indian economy is linked to the global economy, growth next year could be less unless measures are taken to combat slowdown.

The International Monetary Fund (IMF) has recently said that global economic growth would further slow to 2.2% from the earlier projection of 3% and may have an adverse bearing on emerging economies, including India.

Ahluwalia said: “We have not actually made an estimate for next year’s growth. I have been saying quite frankly it is a very difficult situation in the world economy. The US and Europe will have negative growth."

The government on Sunday slashed excise duty by 4% across the board to boost demand and announced Rs20,000 crore additional non-plan expenditure as part of a package.

Besides, the Reserve Bank has since October injected Rs300,000 crore into the system through cuts in various mandatory deposit ratios and opening special refinance windows for mutual funds and small and medium enterprises.