Jaswant sees double-digit growth

Finance Minister Jaswant Singh on Friday said the country might see a double-digit Gross Domestic Product (GDP) growth in the current fiscal. He added that the fiscal deficit, as a share of the country's rapidly growing GDP, was expected to drop.

Addressing mediapersons in Mumbai, Singh said: "Total revenue collections till April 13, 2004, were at Rs 2,51,643 crore, which is four per cent less than the revised estimates (for the year). So far as the GDP growth for the previous fiscal is concerned, I am of the view that it will be 8.1 per cent. The earlier estimate was 7.5 per cent to eight per cent. I cannot predict the GDP growth for 2004-05, but it will definitely be on the upper side. We may even witness a double-digit growth."

Singh said the internal debt position of India was the same as its foreign exchange reserves. He added, "We have paid $5 billion in the last fiscal, apart from swapping high-cost debt."

While pointing out that the exchange rate was not being used to manage inflation, he said the rupee-dollar parity was determined by market forces and the Reserve Bank of India (RBI) managed the situation and maintained orderly market conditions.

"It is erroneous to conclude that the exchange rate is being used to manage inflation," Singh said.

Responding to queries about the increasing trade deficit, Jaswant Singh said the management of trade from the country was in able hands. The finance minister said: "There has been a growth in imports, but this growth has been benign. It is related to investment and will lead to an economic boom." Singh refused to comment on the Indian Institute of Management (IIM) fee issue, saying the matter was related to a different ministry.

He said the Centre had provided enough funds to Maharashtra for fighting the acute drought situation in the state, Singh said: "I regret that the issue is being politicised. Whoever is saying this is not aware of the factual position. More aid than required has been given to Maharashtra. The fact is that the state delayed in declaring itself drought hit."

Singh also refused to comment on the allegations made by Nationalist Congress Party (NCP) chief Sharad Pawar regarding the privatisation of Jawaharlal Nehru Port Trust (JNPT), saying he had no further information on the issue.