New Delhi, Nov 10: Finance Minister Pranab Mukherjee has said that the Indian economy was able to fare well in spite of the adverse impact of the global economic crisis, due to the strength of its domestic demand.
Addressing the gathering at the 25th India Economic Summit here, he said the stimulus packages provided by the government have been aimed at increasing domestic demand in the face of a global recession.
He said that GDP growth will return to the 9-10 pc growth trajectory by 2012.
He said that fiscal consolidation is imperative for India in the medium term and that he had set a target of reducing the fiscal deficit from 6.8 pc of GDP in the current year to 4.0 pc by 2011-12.
He also expressed optimism that the collective determination of global leaders will address the problems faced by the international community so that the multilateral negotiations on trade and climate change can be successfully concluded
Venu Srinivasan, President, CII, and Chairman and Managing Dierctor, TVS Motor Company, India, pointed out important measures that are being implemented, such as the Goods and Service Tax (GST) and Direct Tax Code, which will go a long way in simplification of tax regime.
Srinivasan said that both an overly regulated market and one without regulations can stifle growth, and therefore CII believes in maintaining a balance between the two.