The Planning Commission is of the view that the economy will grow at near 7% during the current fiscal.
“GDP growth of 7.9% in the second quarter is encouraging and now we will revise our growth targets upwards. We will certainly do better than our earlier estimated target of 6.5% for the year,” said Montek Singh Ahluwalia, deputy chairman of the Planning Commission.
The upward revision of the growth target is based on the conviction that the rabi crop season would be better and agriculture growth would improve in the fourth quarter. “We believe the rabi crop would be better and will mitigate the impact of the drought that we saw for our kharif crop,” Ahluwalia said.
On the impact of the Dubai financial crisis, Ahluwalia said, “It will not have a significant impact of the Indian economy as we are not entirely dependent on Dubai for our exports.”
He said the economy was performing well despite the global recession as the government has continued economic reforms.
Comments