India's growth disappointing, but recovering: Pranab Mukherjee

New Delhi - Finance Minister Pranab Mukherjee, presenting the 2012 budget on Friday said the growth of the Indian economy, estimated at 6.9 per cent during this fiscal year, was “disappointing”.

“The global crisis has affected us. India’s gross domestic product (GDP) was expected to grow at 6.9 per cent in 2011-12, after having grown at 8.4 per cent in each of the two preceding years,” the finance minister said at the beginning of his seventh budget presentation in the Lok Sabha.

“Though we have been able to limit the adverse impact of the slowdown in our economy, this year’s performance has been disappointing. But it is also a fact that in any cross-country comparison, India still remains among the front-runners in economic growth.”

At the same time, Mr. Mukherjee also said that the Indian economy was at the cusp of a revival, as agriculture and services had continued to grow at a decent pace. It was industrial performance that was acting as a drag.

“While we do not have the aggregate figures for the last quarter of 2011-12, numerous indicators pertaining to this period suggest that the economy is now turning around. There are signs of recovery in coal, fertiliser, cement and electricity sectors.”

Mukherjee said as India enters the 12th Five Year Plan, beginning April 1, the focus of his government would be on five key areas:

Frame policies that trigger domestic demand recovery

Ensure rapid rise in private investment

Remove bottlenecks in agriculture, energy, transport, coal, power and national highways

Address malnutrition

Find ways to expedite implementation of decision, prompt delivery and good governance with transparency, while curbing black money and corruption