New Delhi: The government on Nov 12, said India''s macro-economic fundamentals were encouraging for a sustained, rapid and more inclusive economic growth. It said the consensus estimate on economic growth in the current financial year (to March) was 8.5 per cent. The overall economic fundamentals continue to be strong, the finance ministry said.
In 2006-07, the economy registered a growth of 9.4 per cent. The government said there were indications of fresh capacities being added, which was likely to support higher overall growth. An increase in investment rate can be hoped to not only sustain industrial performance but also reinforce the outlook for growth in the medium term. The government noted that the appreciating rupee and hardening of interest rates could impact growth. The combination of a increasing rupee and high interest rates has dented growth in export-oriented and interest rate-sensitive segments.
Finance Minister P Chidambaram warned that the pressures on consumer prices continued due to rising international oil, food and commodity prices. Pressure on inflation may come from international fuel, food and commodity prices.
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