8.2 percent growth projection not disappointing: Pranab


New Delhi : A day after the prime minister’s Economic Advisory Council lowered GDP growth forecast to 8.2 percent from the earlier 9 percent, Finance Minister Pranab Mukherjee Tuesday said the projection was not “disappointing” given the uncertain global scenario.

Support TwoCircles

“In the overall context of the global scenario, with European recovery fragile and US recovery uncertain, I don’t think that 8.2 percent is disappointing,” Mukherjee told reporters here.

The Economic Advisory Council, headed by C. Rangarajan, Monday pegged the GDP growth for 2011-12 at 8.2 percent against the budgetary estimate of 9 percent (plus-minus 0.25 percent).

Mukherjee said the decline in the growth projection was mainly because of the uncertainty in the global economic climate.

However, the finance minister said he was hopeful of maintaining the fiscal and revenue deficit target.

“The current account deficit will be 2.7 percent of GDP. It was around 2.6 percent of GDP last year,” Mukherjee told reporters outside his North Block office.

Asked about the chances of increase in the government’s borrowings to fund social security programmes, Mukherjee said: “I will keep my borrowings within my limit.”

On export growth, the finance minister said it had been robust because of the market diversification policy. “Robust growth in export is an important indication.”

India’s exports surged 46.45 percent at $29.21 billion in June as compared to $19.94 billion in the same month last year, according to official data released Monday.

In the first three months of the current fiscal, exports grew 45.71 percent to $79 billion, while imports increased 36.22 percent at $110.61 billion.