New Delhi: India’s gross domestic product (GDP) is expected to expand by around 7.75 percent in the current fiscal, but food inflation remains a “major concern”, Finance Minister Pranab Mukherjee said on Wednesday.
Speaking at a pre-budget meeting of state finance ministers here, Mukherjee also said the government could unload surplus wheat and rice stocks for open market sale.
"There are enough wheat and rice stocks. Therefore, it is proposed to make open market sale for unloading of surplus stock," he said.
India’s factory output grew at a two-year high 11.7 percent in November, rekindling hopes that the economy would soon reach 8-9 percent growth path.
However, food inflation is ruling above 18 percent, forcing the government to take policy decisions to control the runaway prices.
The economy grew 7.9 percent in the second quarter this fiscal.
Earlier this month, Prime Minister Manmohan Singh had said the economy would grow over 7 percent in 2009-10 and return to 9 percent growth in two-three years.