By NNN-PTI,
Mumbai : The Indian economy is expected to grow at least 7 per cent in the next financial year on the back of the two stimulus packages given by the Government, but in the immediate-term there would be some pain and a rise in unemployment levels, a top Government official said.
“The world economy expects a recovery in the second- half of the next fiscal…In the coming year, India’s growth will be at least seven per cent,” Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia, told reporters on the sidelines of a seminar here Saturday.
However, in the immediate-term, the manufacturing, gems and jewellery and other export-oriented sectors would suffer some pain coupled with a rise in unemployment levels, he said.
“The pace of economic growth will be slower in the first-half but there will be a pick-up in the second-half. Post-September 2009, there will be a revival in the economy,” Ahluwalia said.
With inflation not a problem, the focus would now be on stimulating growth, he said.
Both fiscal and monetary policies would now be aimed at supporting growth. “Growth is a problem, inflation is not a problem,” he said.