New Delhi: India has braved the global financial crisis better than other countries, but a meaningful recovery depends on how quickly some key economies turn the corner, Finance Minister Pranab Mukherjee said on Friday.
"By merely generating demand in the domestic economy and exploring markets for exports, it is not possible to have a sustainable recovery," Mukherjee told the annual Hindustan Times Leadership summit at the Taj Palace Hotel here.
"Developed economies of Europe, Japan and US account for 62 percent of our exports. Another of our key export sectors is information technology. But it has also been hit, because outsourcing has been reduced badly," he said.
"Recovery is halting, slow--whether it will be steady I cannot say right now. I still have to wait for the figures to come," said the finance minister, adding: "Third quarter and four quarter--I am confident. We will reach the targets."
Mukherjee, one of the senior-most cabinet ministers in Prime Minister Manmohan Singh government, said the road ahead for the Indian economy was long, arduous with many hindrances. "We have to go a long way. The journey won't be easy."
He said there were several forecasts on India's gross domestic product (GDP) growth, including those by the Prime Minister's Economic Advisory Council and the Reserve Bank of India - which were also working on some studies.
He said he was hoping for a growth of between 6-6.5 percent during the current fiscal. At the same time, he said, pressures on the price line were still to abate and estimated the annual inflation rate at 6-6.5 percent by the year-end.
The Minister said he was also trying to garner political support for a host of economic legislations--such as a new companies act, labour reforms and opening up of the pension and insurance sectors.
"I will try and get the legislations passed as fast as possible. I don't know when - whether in the winter session or the next. I will try and get support from my coalition partners and as much as possible from outside the coalition."
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