Finance Ministry: 6% Growth Rate ‘Decent’ During Slower Years

India aims to maintain a real GDP growth rate above 6%, even as 8-9% growth remains episodic rather than consistent for most economies, a senior finance ministry official stated.

An internal study of major economies—including China, the US, the UK, and Japan—revealed that higher growth rates tend to occur in phases rather than persistently. While China and Japan recorded 8-9% growth in certain periods, the US averaged around 3% and the UK around 2.7% over decades.

The official emphasized that 6% is a critical benchmark—growth below this level would be a concern. However, the ministry expects a boost from recent income tax cuts and increased private sector investments to push growth well beyond 6% this year.

“With private sector capex picking up and public expenditure staying strong, we anticipate growth exceeding 6%,” the official added.