Chidambaram confident of 9 per cent GDP growth

February 28th, 2008 - 6:49 pm ICT by admin  

New Delhi, Feb 28 (ANI): Soon after tabling the Economic Survey in the Parliament, Union Finance Minister P Chidambaram expressed confidence that nine per cent of average gross domestic product (GDP) growth can be attained during the Eleventh Five Year Plan.
“Given the solid foundation of domestic investment and savings, we are confident of meeting the Eleventh Plan target of nine per cent average growth,” Chidambaram told reporters here.
“We will be able to mobilise the resources for meeting the growth target of nine per cent,” he added.
Chidambaram went on to say that the GDP had averaged 8.7 per cent during the last five years, which indicated both stability and sustainability.
Expressing his confidence over containing inflation while sustaining growth, He said that he hoped that there would be greater private consumption and a better supply of goods.
“Containment of inflation is high on the governments agenda,” said the Economic Survey 2007-08.
“The anti-inflationary policies of the government, include, inter alia, strict fiscal and monetary discipline; rationalisation of excise and import duties of essential commodities to lighten the burden on the poor; effective supply-demand management of sensitive items through liberal tariff and trade policies; and strengthening the public distribution system,” the survey said on issue of inflation.
Chidambaram described the Economic Survey as “optimism with caution”.
He further said that there were number of things that are going in “our favour, but we need to respond to them to be able to reap benefits.”
Highlights of the Economic Survey 2007-08

Economy moves decisively to higher growth phase

Economic growth in 2007-08 projected at 8.7 per cent.

Overall inflation projected to decline from 5.6 per cent in 2006-07 to 4.1 per cent in 2007-08

Acceleration in domestic investment and savings rates.

Buoyant growth in Government Revenues

Investment climate full of optimism

Concern over slowdown in consumer goods segment of industry and infrastructure constraints

Indian economy at market exchange rate to cross one trillion dollars in current fiscal

Growth in service sector continues to be broadbased with transport and communication being the fastest during the Tenth Five Year Plan

13.9 per cent growth in financial services in 2006-07

Annual average growth of money on an accelerating trend since 2003-04 reaching 19.5 per cent in 2006-07

Considerable uncertainty in quantifying the downside risk arising from the housing market and sub-prime mortgage market crisis in US

150 per cent increase in net foreign direct investment inflows in 2006-07 to 23 billion dollars. Trend continues in the current financial year with gross FDI inflows reaching 11.2 billion dollars in first six months

Trade to GDP ratio increases from 22.5 per cent of GDP in 2000-01 to 34.8 per cent of GDP in 2006-07

Heightened urgency to augment and upgrade infrastructure both physical as well as social and in particular power, roads and ports

Persistent institutional weaknesses and implementation constrains at different levels of government need to be addressed

Private sector requires policy and regulations that are comprehensive but simple and clear and credible

Share of Central Government expenditure on social services, including rural development, in total expenditure (Plan & Non-Plan) increased from 10.97 per cent in 2001-02 to 16.42 per cent in 2007-08

Agricultural growth, dependent as it is on monsoon, continues to fluctuate. Overall foodgrains production in 2007-08 expected to fall short of the target by 2.2 million tonnes. Need for second green revolution particularly in rainfed areas emphasised. (ANI)

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