India's government says the country's economy could grow more than seven percent this year despite the overall global recession.
The government said Thursday India's economic expansion does depend on
the economic recovery in the United States and the global economy as
well as the government's ability to push through economic reforms.
The country's finance ministry said it plans to sell off stakes in
government-run companies and reduce fuel subsidies. The ministry also
called for India to allow more foreign investments.
The economic forecast comes head of Monday's release of the nation's new budget.
India, which is Asia's third largest economy, was less affected than
many other emerging economies by the global economic crisis. The
country's economy had been growing at over nine percent, but slipped to
an estimated six and a half percent in the last year.
The government has passed three stimulus packages, cuts in interest
rates and taxes, and spent more on infrastructure to try to maintain
Government officials said recently India will be one of the first
countries to rebound from the global economic crisis. They say this is
partly because India's economy is not as dependent on exports as many
other Asian countries, and it is driven largely by domestic demand.