We can aim to grow at over 9%: Chidambaram

Amid growing concerns of a possible impact of US slowdown on Indian economy, Finance Minister P Chidambaram has said that through fiscal prudence, high domestic savings and investment, the country could aim to grow at over 9%.

"We have to do right things and avoid doing the wrong things... Continue fiscal prudence. Two: Ensure that people save and invest and there is enabling environment for investors, both domestic and foreign," Chidambaram said.

He also said that the country would have to ensure that "these investments are made widely, managed wisely, so that they give a return. If these principles are observed, I do not think it is difficult in India to sustain a growth of no less than 8%, pushing 9%, and aiming to go beyond," Finance Minister told BBC World Service in an interview.

When asked about his most challenging task, Chidambaram said it is "to ensure that the economy grows at no less than 8% a year."

On why India was trailing China in attracting FDI, he said, "the foreign investment that will flow into India is also dependent upon our capacity to absorb it. And our capacity to absorb will depend upon our willingness to open more sectors which are regulated, open them up to foreign investment." He, however, added that FDI inflows were running 50% higher in the current fiscal than in the previous one.

He said country's current account deficit was still very modest - 1.3% of GDP - and it needed to "expand the current account deficit and absorb foreign direct investment."