Union Finance Minister Pranab Mukherjee announced that an 8.5% GDP growth for the existing financial year would augur well for India during the present fiscal.

But, Mr. Mukherjee warned that the situation could alter in a drastic manner if the financial disaster in the Europe were to soar.

While addressing a “Financial Inclusion Summit,” arranged by the Confederation of Indian Industry, finmin stated that he was inclined to lap up the International Monetary Fund's (IMF) projection of the country rising at 9.4 to 9.5% during the existing fiscal, however, preferred to be conventional in his evaluation.

“I'll be happy if the country grows at 8.5 percent,” he said.

However, Mr. Pranab put out a note of concern following the IMF's risk to Hungary on its failure to execute severity measures.

If the disaster was limited to some nations in Europe, it would not affect the country much, he said adding, “But if it assumes large proportions and spreads to other countries, then I don't know what will happen.”

Mr. Mukherjee asked the banking institutions to build up a feasible, plausible and replicable business model for financial enclosure of those living in 6-lakh villages.

Around 6% of villages had been addressed up till now.