Economy to grow by 7.5% in 2009-10: PM

Economy to grow by 7.5% in 2009-10: PM

New Delhi: Prime Minister Manmohan Singh said on Saturday the economy is expected to register a growth rate of 7.5% in this financial year (2009-10), up from 6.7% a year ago.

“In the current financial year, the growth rate of economy is likely to be 7.5%," he said while addressing a meeting of the chief ministers on price rise here.

The economy, which had been growing at over 9%, slipped to 6.7% in 2008-09 following the impact of the global economic crisis triggered by the fall of investment bank Lehman Brothers in September 2008.

Driven by stimulus packages and easing of monetary policy, India’s economy during the second quarter (July- September 2009-10) expanded by 7.9%, much more than anticipated by any analyst or thinktank.

The RBI in its recent review of the monetary policy too projected a growth rate of 7.5% for the current fiscal.

Finance minister Pranab Mukherjee, while presenting the Mid-Year Review of the Economy had said that economy could grow in excess of 7.75% despite the impact of drought and floods on agriculture output.