Indian economy would grow at 7-8% as per mid-year economic review, presented in Lok Saba by the Minister of State for Finance, Mr. Pawan Kumar Bansal. Global factors, such as slowdown and financial crisis would impact the Indian economy to a significant extent despite various measures taken by the apex bank and the government to mitigate its impact. Post August period has adversely hit the Indian equity and the foreign exchange markets besides debt and credit markets.

Country's fiscal deficit could slip to 5% of GDP against the target of 2.5%. The Chief Economic Advisor in the Finance Ministry, Dr Arvind Virmani said that the economic stimulus package, announced by the government would help to control the situation. He expressed satisfaction over the declining rate of inflation and hoped that it would further come down to 4-5 per cent levels by end-March 2009. However, he asked for extra preparations to sustain the growth rate of 7 per cent in the financial year 2008-09.

Dr. Virmani added that the declining global crude rates would help the economy in the coming times. He hoped that the economic booster package would definitely help the Indian economy and its result would be visible by the end of March 2009.