By IANS
New Delhi : India’s Economic Survey has predicted a lower growth of 8.7 percent for fiscal 2007-08, while warning that rupee appreciation, lower export growth, rising inflation and US recession were posing major challenges.
“There are several challenges to inclusive growth – agriculture, infrastructure, education and skill development.” Finance Minister P. Chidambaram said, after tabling the survey in the Lok Sabha Thursday.
“If you wish me to sum up in one phrase the outlook for 2008-09, I would say optimism, but with caution as the watchword,” Chidambaram said. “There are a number of things going in favour of India.”
The Indian economy had expanded by 9.6 percent during 2006-07.
“The new challenge is to maintain growth at these levels not to speak of raising it further to double digit level,” said the annual survey that presents a status of the nation’s economy and suggests policy prescriptions to address challenges.
“We need to capitalise on the opportunities while, at the same time, respond to the evolving situation in the global economy in a manner that our growth story is not affected,” the finance minister said.