Economy firm on growth track,to clock 8.5-9% in long-term: FM

* Need to be alert and respond to emerging challenges in a timely manner

Amidst sluggishness in the economy,Finance Minister Pranab Mukherjee today expressed optimism that the country would maintain a high economic growth trajectory of 8.5 to 9 per cent in the medium- to long-term.

In the medium- to long-term,India remains firmly on a high GDP growth path of 8.5 to 9 per cent. We,however,need to be alert and respond to emerging challenges,in a timely manner as we make efforts to achieve our potential as a young and fast-growing nation, Mukherjee said while addressing the ADB-India partnership celebrations.

Despite sustained high growth,he said,Asia is not on autopilot mode and would require careful steering. Policymakers have the onerous responsibility of shaping the path to make the Asian century a reality, he said.

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Talking about the high inflation in the country he said,We recognise that the increase in agriculture production on a sustainable basis is a long-term solution to the problems of availability as well as high and fluctuating food and commodity prices.

Commenting on the eurozone debt crisis,he said that European nations will have to find their own solution to the problem of sovereign solvency and make a credible assessment of liquidity needs. Developing nations could consider providing supplementary support to these nations once a clearer picture emerges post the European Union summit to be held on October 23,he said.

We (G20 finance ministers) have made no specific recommendations to the leaders who will attend the G20 meet in Cannes because European Union is supposed to meet later this month. The sovereign debt issue needs to be resolved by the Europeans themselves, Mukherjee said.

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Pranab Mukherjee

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