PC sees 7% GDP growth this fiscal

Taking stock of the economic performance in UPA's one year in power, finance minister P Chidambaram today projected 7% GDP growth this fiscal and promised to keep inflation under control and ensure low interest rates.

"We have managed to contain inflation at moderate levels,
interest rates are benign and the gdp is expected to grow by
about 7% this fiscal," he told a news conference.

While RBI and ADB projected GDP to grow by 7% in the current fiscal while IMF expects it to be 6.7%, United Nation's Escap and Ncaer pegged it at 7.2%.

Last fiscal, GDP growth was estimated at 6.9% while it was 8.5% in 2003-04.

With a prospect of normal monsoon, Chidambaram said agriculture is expected to grow at 3% while manufacturing and services will continue to do well.

Outlining the 5-point game plan for attaining 7% growth, he said investment growth has to be sustained, infrastructure improved, fiscal and revenue deficit curtailed, inflation curbed and interest rates kept benign.

On the widening of trade deficit, Chidambaram said there was no vulnerability on the balance of payment position as foreign exchange reserves continue to surge.

He said various international credit rating agencies have
also upgraded their investment ratings for India reflecting
growing confidence in the Indian economy.

Fitch has upgraded its rating on India from 'BB' to 'BB+', S&P has also raised it from 'BB' to 'BB+' with stable outlook, he added.