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Pranab bets on 8% growth next fiscal
August, 28th 2009

The government expects GDP growth to accelerate to over 8 per cent in 2010-11, with the economy showing signs of recovery.

In the current fiscal, finance minister Pranab Mukherjee said the economy would expand more than 6 per cent, despite the insufficient monsoon.

More than 8 per cent economic growth is achievable next fiscal if there are no further adverse conditions, said Mukherjee, adding that the investment climate is encouraging.

Growth had dipped to 6.7 per cent in 2008-09 from 9 per cent in recent years as the global economic meltdown had cast its shadow on the economy.

It has, however, started showing signs of a rebound. Data released by the government today said industrial output grew 7 per cent in July on top of a 7.8 per cent growth in June.

The turnaround came on the back of a series of stimulus packages given by the government to industry, which saw tax and interest rates being cut.

The minister said all efforts were being made to implement the goods and services tax (GST) regime from April 1, 2010. The tax is meant to replace all indirect taxes at state and central level such as excise duty, service tax and value-added tax, and create a unified internal market.

Political consensus in all states is essential for executing the GST deadline...GST is part of the road map for economic reform.

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