Budget 2011 would put economy back on 9 per cent growth track

After seeing an "impressive" gross domestic product (GDP) growth for 2009-10 at 7.2 per cent, Finance Minister, Pranab Mukherjee expressed his confidence in the measures initiated in Budget 2011 and said that it would help revive private investments and put the economy back on 9% growth, at a recently held function.  

Speaking about the growth graph, the Minister said that the growth is expected to be 7.2 per cent in 2009-10 which is impressive by global standards and the growth rate will climb back to 8.25-8.75 per cent in 2010-11. 

He remarked that the measures drawn by him in this year's Budget such as extension of interest subvention for exports in certain sectors and exemption from capital gains tax to facilitate conversion of small businesses to limited liability partnership (LLP) format will prove instrumental in heralding the economic growth.

Speaking about the role of micro finance, Mr Mukherjee said that it has emerged as a new channel of economic empowerment and can prove instrumental in attaining Millennium Development Goals. Further, he added that the government aims to double credit flow to MSME sector within five years and he promised to implement recommendations of a report of the PM's Task Force on MSMEs set up to address various issues and concerns of the sector.