Union Finance Minister Pranab Mukherjee on Monday said an 8.5 per cent GDP growth for the current fiscal would augur well for the country in the present financial year. He, however, cautioned that the situation could change drastically if the financial crisis in Europe were to snowball.
Addressing a “Financial Inclusion Summit,” organised by the Confederation of Indian Industry, he said he was inclined to lap up the International Monetary Fund's (IMF) estimation of India growing at the rate of 9.4 to 9.5 per cent in 2010-11, but preferred to be conservative in his assessment. “I'll be happy if the country grows at 8.5 percent.”
However, the Minister held out a note of caution in the wake of the IMF's threat to Hungary on its failure to implement austerity measures. If the crisis was restricted to a few countries in Europe, it would not impact India much, he said adding, “But if it assumes large proportions and spreads to other countries, then I don't know what will happen.”
Mr. Mukherjeeurged banks to develop a viable, credible and replicable business model for financial inclusion of those living in six lakh villages. Just 6 per cent of villages had been covered so far.
