"UPA-II has gone through some difficulties. Some of the difficulties may be of our own making. Most of the difficulties (on the economic front) are because of the international situation," he said in an address to Congress workers and leaders at Karnataka Pradesh Congress Committee office here.
Chidambaram, himself a former Finance Minister, said UPA-I had a splendid record (on the economic front) and the GDP grew by an average 8.5 per cent in those five years.
He said 2011-12 was a bad year during which the country achieved a GDP growth of 6.5 per cent which is "not enough" for a developing country like India where millions of people are in poverty.
"We need to grow at a faster rate. We need to create more jobs," he said, adding India needs to grow at over 8 per cent or perhaps at 9 per cent.
Despite the difficulties, Chidambaram said, the UPA government has identified the problems and Prime Minister Manmohan Singh, who also holds the finance portfolio, is addressing these issues.
"We know the problems. We are addressing the problems," he said, adding he is absolutely confident that the country would come out of the low growth phase and get back to the high growth trajectory.
