Lahiri says 8% growth possible

Chief economic advisor Dr Ashok Lahiri expects the economy to grow by more than 7 per cent, touching even 8 per cent, in the current financial year. Dr Lahiri based his optimism on expectations of high agriculture growth and its aftermath on other facets of the economy.

Dr Lahiri on Wednesday came out with the most ambitious forecast for the current financial year. The UNCTAD Report 2003 had forecast 5.4 per cent GDP growth rate for India. IMF, which too was quite conservative, forecast a GDP growth rate of 5.5 per cent. ADB forecast was ambitious in the sense that it predicted economic growth rate of 6 per cent, the same as was indicated by former RBI governor Bimal Jalan.

Hailing the Supreme Court verdict on tax exemption to Mauritius-based companies he said, “It clears the cloud over FII inflows coming to India through the Mauritius route.”