Indian economy is responding well: FM

Finance Minister Pranab Mukherjee, while speaking to media persons in New Delhi on Tuesday, said that India's economy is responding well. He also informed that the government took essential measures to tackle the adverse impact of inflationary pressure.

He said that he would rather go with the economic growth projection of the prime minister's economic panel, saying the 6 per cent forecast by RBI was way too conservative.

"The GDP growth I am inclined to accept (is) the figure of Prime Minister's Economic Advisory Council, headed by C Ranagarajan, that means from 6.5 to 6.75 per cent," he told reporters.

In its monetary policy review, the central bank retained its earlier forecast of 6 per cent growth for FY'10. Asked whether stimulus measures will continue, he said, "As I mentioned that until the economy is on a firm recovery path, it will continue."

The finance minister said figures for second quarter economic growth are yet to come, but industry has started picking up. The Indian economy grew by 6.1 per cent in the first quarter.