India recovery hinges on rich economies: Pranab

NEW DELHI:
Even though India braved the global financial
crisis better than other countries, a meaningful
recovery depends on how quickly some
key economies turn the corner, finance minister
Pranab Mukherjee said 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."

The finance minister 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 finance 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
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."