India to clock double digit growth by 2012: Pranab Mukherjee

Indian economy is likely to clock double digit growth by 2012 and is expected to grow over 8.5% in the current fiscal, finance minister Pranab Mukherjee has said.

"That it (double digit growth) would perhaps be by 2012," Mukherjee told PTI in an interview here.

Asked about the GDP outlook for the current fiscal, the finance minister said, "Of course, I explained the state of Indian economy and we are going to have more than 8.5% growth."

IMF has projected 8.8%, he said, adding, "in our economic survey we have projected, for the year 2010-11, eight and half per cent. As per our present indication is, we are going to achieve that."

During 2009-10, Indian economy grew at better than expected rate of 7.4%. The GDP expanded over 8.6% in the last quarter of the said fiscal.

The GDP growth was despite agriculture output remained flat.

Allaying fears of European crisis having impact on the Indian economy, Mukherjee said, it will not have much impact as the exports to region is limited.

"Not much (impact), because our export is about 4% of our total export. Therefore, it could not have that much adverse impact," he said.

"But, if it spreads, then it may have. Therefore, it is necessary that it should be confined to those countries. And it is expectedly package which has been worked out to resolve the crisis is about 750 million Euro that will take care of it," Mukherjee added.