8.6% for current fiscal satisfactory: Pranab

8.6% for current fiscal satisfactory: Pranab

New Delhi: Finance minister Pranab Mukherjee on Monday said the 8.6% economic growth estimated for the current fiscal was satisfactory in the wake of the rising inflation and trade imbalances.

“A 8.6% is quite encouraging despite all these difficulties. Now the other issue is inflation, trade balance.. these are to be addressed," Mukherjee told reporters here.

Mukherjee said despite challenges “it is quite encouraging that it (GDP) is not deteriorating."

The Central Statistical Organisation (CSO) on Monday estimated economic growth for the current financial year at 8.6%, as against 8% a year ago.

“All along I was maintaining, it should be around 8.5% plus. 8.6% is accepted. My concern is also about the inflation and trade balance," he added.

The 8.9% growth in the first half of the current fiscal notwithstanding, the government is battling high inflation, particularly food inflation.

The overall inflation has remained above the comfort zone of 5% to 6% for over a year now.

In December, the inflation has shot up to 8.43%, from 7.48% in the previous month.

The food inflation is ruling at 17.05% for the week ended 22 January.

The RBI in its quarterly monetary policy review last month upped the March-end inflation projection to 7%, from 5.5%.

In the July-September quarter this fiscal, the Current Account deficit (CAD) surged by 72% to $15.8 billion, compared to $9.2 billion in the same period last year due to higher imports.

The country“s CAD, representing the difference in inflows and outflows of foreign exchange, barring capital movements, stood at 2.9% of the GDP last fiscal.