Finance minister of India, Mr. Pranab Mukherjee expects the economy to perform better than the Central Statistical Organization (CSO) forecast of 7.2% for 2009-10. The government is now expecting the economy to perform better and according to the finance minister the growth of GDP can see the figure of 7.75%.

The 7.9% growth in second quarter makes these predictions little strong and the outlook for next two quarters also looks positive. Also, the Economic Survey for 2008-09 had indicated that the upper bound of growth in real GDP for the year 2009-10 could be around 7.75%.

"When the final figures come, particularly for the third quarter, I think there may be an improvement over the CSO's estimate of 7.2 per cent," Mukherjee said speaking at the consultative committee meeting of the Colombo Plan. "The growth is expected to be in the upper bound range of most predictions for the economy."

The stronger GDP growth will provide the government a chance to start rolling back stimulus measures, which were offered by the government when the global economic crisis erupted in 2008. The measures were announced last year to counter the downturn in which a global financial crisis was compounded by a monsoon failure. Many of fiscal stimulus measures, however, have left a gaping hole in public finances, forcing the government to borrow a record Rs 4 lakh Cr or 6.8 per cent of the GDP in the current fiscal year.