Economy unlikely to grow at 9% this fiscal: FM
New Delhi: Finance Minister Pranab Mukherjee today said it would not be possible to achieve the targeted growth rate of 9 per cent in the current fiscal because of rising global commodity prices.
“Due to volatility in international commodity prices and other supply constraints, it may not be possible to achieve the growth rate of 9 per cent (+/-0.25 per cent) for the current financial year”, Mukherjee said while addressing the probationers of the Indian Economic Service (IES) here.
Indian economy grew by 8.6 per cent during 2010-11.
Referring to rising prices, the Minister said, “the inflation is likely to be in the range of 7 to 7.5 per cent.”
The Reserve Bank has been trying to bring down inflation by increasing repo (lending) and reverse repo (borrowing) rates.