GDP below expectation; economy to grow 7.3% in FY12: Pranab

India’s economy is expected to grow 7.3 percent in the fiscal year ending March 2012, Finance Minister Pranab Mukherjee told reporters on Wednesday, adding, the reading for the September quarter fell below the government’s expectations.

Pranab Mukherjee said global financial problems had adversely affected domestic growth.

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“Taking into account the trend of the last two quarters, I expect the GDP growth to be 7.3 percent (in 2011/12),” he said.

The economy grew at its weakest pace in more than two years in the quarter that ended in September, revealing the heavy toll that high inflation, rising interest rates and crisis-hit global capital markets are having on Asia’s third-biggest economy.

The GDP figure was in line with the median forecast in a Reuters poll for an annual rise of 6.9 percent.

Reuters