Chidambaram hopeful of 9 p.c. growth
Union Finance Minister P. Chidambaram after presenting the Economic Survey 2007-08 in Parliament on Thursday. With the country's economic fundamentals strong and investment climate full of optimism, Finance Minister P. Chidambaram on Thursday exuded confidence on achieving an average GDP growth of nine per cent during the Eleventh Plan period (2007-08 to 2011-12) while reining in inflation alongside. As for the outlook for 2008-09, Mr. Chidambaram said: "Optimism, but with caution, is the watchword' while commenting on the policy prescriptions of the Economic Survey 2007-08 which projected a lower GDP growth of 8.7 per cent for the current fiscal and, in that light, viewed sustenance of a high growth as a daunting task. Speaking to newspersons immediately after tabling the Survey in Parliament, Mr. Chidambaram pointed out that the country was required to respond to the evolving global economic situation so as to ensure that its growth was not affected and this, he said, could be achieved by capitalising on the opportunity arising from the "favourable' conditions. "I am optimistic about growth and containment of inflation in the coming year [2008-09],' he said, while noting that his priority was to provide a conducive investment climate and manage the macro economy to facilitate non-inflationary growth. Reading out from a prepared statement which was later released to the press, Mr. Chidambaram said: "Keeping inflation under control in an uncertain global environment will be one of the major challenges in 2008-09.' He noted that the current slowdown and possible recession in the global economy posed risks to growth. On the rise in domestic savings and investment, the Finance Minister said: "We are confident of meeting the 11th Plan target of 9 per cent average growth.' The high GDP growth, he said, had benefited the common man as well, as this was reflected by a near doubling of the annual growth rate of per capita consumption to 5.1 per cent in 2007-08 compared to 2.6 per cent for the previous 11 years. "If the rate of growth of per capita GDP continues at the five-year average of 7.2 per cent per year, the average income would now double in a decade instead of a generation or more, earlier,' he said. Expressing concern over the slow pace of growth in the farm sector and bottlenecks in infrastructure development, he stressed the need for mobilising public and private resources for "inclusive' growth. In a note of confidence, the Finance Minister said: "I am optimistic about growth and containment of inflation in the coming year. It will be my priority to continue to provide a conducive investment climate and manage the macro economy to facilitate non-inflationary growth. We have to ensure that the benefits of this growth percolate to the most marginal and vulnerable segments of society.'