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Economy to grow by 6.7 pc in FY10: Montek

June 08, 2009 17:32 IST
With economic conditions turning better compared to that three months ago, the Planning Commission on Monday said economy should record at least 6.7 per cent growth rate this fiscal, the same as was witnessed in 2008-09.

"What I can say is we should at least be aiming at the same growth as achieved last year and I think we could do a little better," Planning Commission Deputy Chairman Montek Singh Ahluwalia said. Last week he was reappointed as deputy chief of the Planning Commission.

Many people say 7 per cent growth is not impossible this fiscal and some believes it could be better, he said.

Lots of it depends on how global economy behaves in the second half of this fiscal. Everybody expects that sharp downturn is coming to an end, but people are not sure how good a rebound we are going to see in the world economy, he said.

"So, I think there are some real uncertainties. But compared to three months back, the economic situation is much more favourable. Investors are certainly seeing it as such," Ahluwalia said.

The fact that we have strong mandate for stable government holds for the prospects of stable policies and we have seen some of that reflected in investment growth already, he added.

Ahluwalia also mentioned that international financial analysts were predicting 5 per cent growth rate for last fiscal (2008-09), whereas actual expansion was 6.7 per cent.

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