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Growth rate of 9% unlikely in near future: PMEAC

Last Updated: Thursday, October 15, 2009 - 19:13

New Delhi: The Indian economy is unlikely to
return to nine per cent growth level in the near future as the
global slowdown may continue for some more time, says Prime
Minister`s Economic Advisory Council member Govinda Rao.

He, however, exuded confidence that in another two years
the economic growth may touch 8 per cent.

"Nine per cent happened when the global economy was
booming. And one doesn`t expect that to happen in the near
future. But I think the trend growth (8 per cent) can happen
in the next couple of years," Rao told a news channel.

Having recorded about 9 per cent growth rate in three
consecutive years since 2005-06, India`s growth rate fell to
6.7 per cent during 2008-09 on account of the impact of the
global financial crisis. India recorded a growth rate of 6.1
per cent during the first quarter of this fiscal.

For the current fiscal, the PMEAC member said the economy
is likely to grow between 6.5 per cent and 7 per cent.

"Well, I think it (growth rate this year) will be
definitely 6.5 per cent plus. It could be anything between 6.5
per cent and 7 per cent," he said.

Yesterday, PMEAC Chairman C Rangarajan said his estimate
is that the economy would grow between 6 and 6.5 per cent in
the current fiscal. "Perhaps it would be closer to the upper
end of my range," he added.

Bureau Report

First Published: Thursday, October 15, 2009 - 19:13
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