Many sectors continue to be hurt very badly-- Anand Sharma

There is no doubt in Commerce Minister Anand Sharma's mind that the Indian economy will grow by 8% in FY11. In a speech opening the Budget session of Parliament, President Pratibha Patil said the economy was likely to grow about 7.5% in FY10 and that the government would aim for a annual growth rate of 8% in FY11 and 9% in FY12.

Sharma stated that inflation is of serious concern and said there is a shortage of pulses and edible oil in country. Exports, he added, are firmly in positive territory. Food prices are growing at the fastest pace in 11 years and the government fears a backlash from millions of rural poor who are its main voters.

Stimulus exit must be calibrated, says Sharma. He believes that the recovery is still fragile and some hand-holding is required. "Many sectors continue to hurt very badly. They are not into positive growth but are still in the red."