India to review economy stimulus

[pampango]

Source: BBC

Stimulus measures introduced to boost the Indian economy during the downturn will be reviewed, the government said as it unveiled its annual budget. Indian federal finance minister Pranab Mukherjee said the measures had helped to maintain strong growth, but inflation must now be controlled.

The Indian economy is expected to grow by 8.7% in the current fiscal year, Mr Mukherjee added. "The Indian economy now, is in a far better position than it was a year ago," he said. "The first challenge before us is to quickly revert to the high GDP growth path of 9%."

India's economy is recovering faster than expected - it grew at an annual rate of 7.9% in the three months to the end of September 2009, after growing 6.7% in the year to the end of March 2009.

Strong growth in India's manufacturing sector is also helping to compensate for falling agricultural output.

Read more: http://news.bbc.co.uk/2/hi/business/8538068.stm