GDP To Grow At 9Pct Once Structural Issues Addressed: Finmin


NEW DELHI: Indian economy is expected to expand at 8.5-9 percent over 10-15 year time frame once the structural issues hampering growth are addressed by the government, Finance Secretary Rajiv Mehrishi said.

"India has a growth potential close to 8.5 percent to 9 percent over the next 10-15 years... The short term growth may be lower on account of structural issues which we are

tackling," Mehrishi told agency Strong economic growth, he added, is necessary for solving many socio-economic problems facing the country. "India's growth is expected to be at least 8 percent in the current fiscal on account of initiatives taken by the government to boost investment and growth," Mehrishi said.

The Economic Survey had projected a growth of 8.1 to 8.5 percent in the current financial year. "Multilateral institutions also share our growth optimism. IMF has projected a growth of 7.5 percent for 2015-16.

Other organisations also project the growth to be in the vicinity of 7.5 percent ," he added. As per the latest World Economic Outlook of the International Monetary Fund (IMF), India will surpass China in terms of growth to become the fastest growing large economy in the world.

IMF expects India to grow at 7.5 percent in both 2015 and 2016, while China's growth rate has been projected at 6.8 percent and 6.3 percent respectively. "Though the recovery in advanced economies is slow, the external environment for India is benign," Mehrishi said.

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Source: PTI