Optimistic over the Indian economic growth story, Finance Minister Arun Jaitley has stated that economy is set to clock a 6.5% growth next year and then take off to reach 8-9% in the years to come on the back of huge public support for reforms initiated by the government.
By adding further, the Minister stated that 5.5% growth in the previous fiscal , which was reasonable by the global, however it is much below the real capacity of India and the target is get back to 8-9% growth rate in future. Finance Minister is scheduled to present the Budget for 2015-16 on February 28 in the Lok Sabha. He is likely to spell out the strategy of the government to boost manufacturing and also economic growth in the forthcoming Budget. Referring to the price situation, Finance Minister stated that India has a moderate level of inflation, mainly on account of declining commodity prices in global and domestic markets.
After registering an average growth rate of 8% during FY08-FY12, Indian economic growth had slowed down to below 5% over the last two financial years. The factors like high interest rate and stubborn inflation, low investments and slow execution of infrastructure projects have impacted country’s economy growth. However, the domestic economy has shown signs of nascent recovery and expanded at 5.5% during H1FY15 as compared to 4.9% in the same period of previous fiscal.
