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Budgetary measures will boost investment, growth: Pranab
April, 03rd 2010

Finance Minister Pranab Mukherjee on Friday hoped that the measures outlined in the 2010-11 budget will boost private investment and put the economy back on a 9 per cent growth track.

"I am optimistic that the measures I have outlined in this year's budget will revive private investment and put the economy back on the growth path of 9 percent," Mukherjee said, addressing a SIDBI (Small Industries Development Bank of India) function here.

"The economy in 2009-10 would grow by 7.2 per cent, which is impressive by global standards, while the growth during the 2010-11 will be between 8.25-8.75 per cent," he added.

The government till now has maintained that the economy will grow at 8.5 per cent in 2010-11.

Prime Minister Manmohan Singh on Thursday asserted that the Indian economy would grow at 9 per cent by 2011-12 and at 10 per cent thereafter in the 12th Five Year Plan.

India's economy grew at 6.7 per cent in 2008-09 after having a growth of over 9 per cent in three consecutive fiscals till 2007-08.

Mukherjee later told reporters that direct tax collection expected for the 2009-10 fiscal was well above the budget expectations.

The Central Board of Direct Taxes has already revised the original direct tax collection target of Rs 370,000 crore to Rs 400,000 crore this year on expectation that economic recovery would lead to a higher mop-up.

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