Market
Economy07/02/2012  04:29 PM

India Fin Min Anticipates Upward Revision In GDP Growth For FY12

India Finance Minister Pranab Mukherjee hopes an upward revision in the GDP Growth when full data for the Year 2011-12 becomes available. Indias gross domestic product or GDP growth is expected to be lower than 7% at 6.9%, according to advance estimates for the year ending March 2012, released by the Central Statistical Organisation (CSO). This is the slowest growth after 2008-09 when India registered a growth rate of 6.7%. The finance minister highlights that the main reason for decline in the GDP growth is slowdown in industrial growth, in particular in investment growth. He said that the negative growth in mining sector along with slowdown in construction sector has also contributed to the decline in GDP growth.

Although figures of advance estimates for GDP for the current fiscal somewhat look disappointing by our recent growth experience, yet considering the current global context and the slowdown in the domestic industrial sector in particular, the growth performance is not all that surprising, he added. The Union Finance Minister further said that there have been some encouraging signs in the recent weeks on business sentiments, Rupee exchange rate, moderation in headline inflation, possibility of a bumper Rabi crop, and continued strong performance of the service sector which should help in recovering the growth momentum. The Finance Minister said that he anticipates an upward revision in the GDP growth numbers when the full data for year 2011-12 becomes available.

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