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July 06, 2009 17:16 PM

India Says Economy On Track, Targets 9 Percent Growth

By P. Vijian

NEW DELHI, July 6 (Bernama) -- After weathering an economic slowdown plus a delayed monsoon which threatened food production, India says its economy is now on track and aims for a nine percent growth.

While the developed economies still saddled with money supply, India, Asia's third largest economy after Japan and China, is bullish about its performance.

While unveiling the 2009-2010 Budget in Parliament today, Finance Minister Pranab Mukherjee said "the worst is behind us" and the government planned to bring the economy to a high growth rate.

"The first challenge is to bring back the GDP (gross domestic product) growth rate to over nine percent per annum. There are signs of an economic recovery," he said.

The Congress led-United Progressive Alliance (UPA) government, which returned to power last May, after a resounding victory, is promoting inclusive growth and outlined a slew of reforms, especially for the rural sector.

By increasing funding for the NREGA (National Rural Employment Guarantee Act), the UPA government aimed to reduce poverty by half by 2014 through expanding job opportunities.

"NREGA is a magnificent success. The government is committed to providing a wage of Rs100 (RM7.40) a day to rural households in convergence with other schemes for rural areas," Mukherjee said.

To spur the economy, India has also increased its allocations for the infrastructure sector by 23 percent, compared to the previous budget.

-- BERNAMA

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