Economy to grow over 7.5% this fiscal and 8% next fiscal: FM

New Delhi, Feb 24 (PTI) Indian Finance Minister Pranab
Mukherjee Wednesday said the economy will grow by over 7.5 per
cent this fiscal helped by stimulus measures, but offered no
hints if these sops will be retained or partially rolled back
in the Budget on Friday.
For FY'11, Mukherjee pegged growth at over eight per cent.
"Central excise has been used as a fiscal tool to cushion
the impact of the global recession. It is reassuring to note
that stimulus measures, including reduction in central excise
duty, have had a positive impact on the Indian economy," the
Finance Minister said at an event to mark Central Excise Day.
Mukherjee said that an impressive industrial growth of
16.8 per cent in December suggests the economy will grow by
over 7.5 per cent in 2009-10 and over eight per cent in the
next fiscal. The economy needs to grow by double digits to
eliminate poverty and illiteracy, he added.
To blunt the impact of the slowdown that swept the globe
since the middle of 2008, the government had cut excise duty
by 6 per cent and service tax by 2 per cent, besides stepping
up spending to provide Rs 1.86-lakh crore worth stimulus.
But, these measure widened fiscal deficit to 6.2 per cent
of GDP in FY'09 from Budget estimates of just 2.5 per cent.
As such, the Indian Prime Minister's Economic Advisory
Council has sought partial roll back of stimulus and there is
speculation in certain quarters that stimulus might be
withdrawn in the Budget, given recovery in the economy.
But, the Finance Minister did not give any indication to
that effect. (More) PTI