FM optimistic of economy growing over 8.75 pc in FY11

NEW DELHI: Finance Minister Pranab Mukherjee on Thursday exuded confidence that the Indian economy will post better growth than 8.75 per cent this fiscal, as projected by the economic survey.

"I am optimistic that at the end of this year we will be able to surpass our GDP growth forcast of 8.5-8.75 per cent given in the Economic Survey," Mukherjee said at a function on Indo-German Industrial and Economic cooperation.

Indian economic growth slowed down to 6.7 per cent in 2008-09 from 9 per cent in the previous three years, as an aftermath of the global financial crisis.

To blunt the impact of the global crisis, the government provided stimulus to the economy by cutting taxes and stepping up public expenditure. This catapulted economic growth to 7.4 per cent last fiscal.

Indian economy expanded by 8.8 per cent in the first quarter of this fiscal against 6 per cent a year ago. The first quarter growth this fiscal is encouraging, particularly since the government partially withdrew the stimulus by raising excise duty by 2 per cent to 10 per cent.