Pranab Mukherjee assures Indian economy will grow at 8.25-8.75 percent in current fiscal

NEW DELHI - Finance Minister Pranab Mukherjee on Tuesday said the economy will grow by 8.25-8.75 percent in the current fiscal and will return to an average growth rate of nine percent soon, but food prices continue to drive inflation.

Mukherjee said that economic growth would exceed nine percent in the near future stating that the gross tax revenue has grown at a robust pace so far in the current fiscal and proceeds from spectrum sale, as also disinvestment would help fill the financial deficit.

“The auction of 3G and broadband spectrum and disinvestment proceed would help meet the fiscal deficit target. The gross tax revenue grew by 27.3 percent so far this fiscal as opposed to negative growth rate in the same period last fiscal,” said Mukherjee at the annual Economic Editors Conference here today.

Pranab Mukherjee said the food prices were the main factors responsible for inflation. He expressed concerns on rising rupee having implications on the country’s exports.

“Strong domestic demand and robust investment climate had led to surge in capital inflow,” he claimed. (ANI)