Indian economy to grow at 7-7.5 pc next fiscal as well: Nath

Davos, Jan 30 (PTI) India has exuded optimism that it
would continue to maintain economic growth rate of 7-7.5 per
cent next fiscal, the same level it is expected to register in
the current fiscal, even as its neighbour China termed its
lower growth projection of 8 per cent in 2009 as a tall order.

"We hope to continue at the same level of 7-7.5 next
fiscal," India's Commerce and Industry Minister Kamal Nath
told a press conference at the World Economic Forum here.

Indian economy grew by 7.8 per cent in the first half of
this fiscal, and there are apprehensions that the growth rate
will slow down in the second half despite stimulus packages,
with industrial production falling for the first time in 15
years in October last year.

Also at WEF, Chinese Premier Wen Jiabao had said that his
government had set a target of 8 per cent economic growth for
2009 against 9 per cent in 2008 as international financial
crisis had inflicted rather big impact on the country's real
economy.

Jiabao termed the target of 8 per cent as a tall order,
but expressed confidence that China will attain that through
hard work.

It should, however, be noted that Jiabao was talking in
terms of calendar years, and Nath was referring to fiscal
years, but the perspectives of the statements of both could be
broadly compared.

When asked what is the source of his optimism given the
global slowdown, Nath said Indian economy will not be
sustained merely by exports, but by the domestic demand.

"Those economies which are heavily dependent on exports
for economic growth are going to take a hit. We have only
15-16 per cent of GDP in exports," he said.
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