The Hindu Business Line : Concerns over poor monsoon have receded: Chidambaram

"There was concern over monsoon. Mercifully, those concerns have receded and I am sure that with all our prayers, the monsoon, although a bit late, will be good this year," Mr Chidambaram said after inaugurating the transmission manufacturing plant of Toyota-Kirloskar Auto Parts near Bangalore.

Later talking to newspersons, Mr Chidambaram said on the back of the 8.2 per cent growth last year, growth between 6.2 per cent and 7.4 per cent is "perfectly acceptable." He said the Left parties would be persuaded to abandon their reservations about the Government's proposal to increase the foreign direct investment (FDI) limits in the telecom, aviation and insurance sectors.

Mr Chidambaram said that according to the National Common Minimum Programme, India could absorb two to three times the current level of FDI limits in the telecom, aviation and insurance sectors. "The Left parties have some reservations, but I am confident I can talk to them and convince them," Mr Chidambaram said.

He said though one could not control global fuel prices, the Government would try to keep inflation under control.

Earlier, he said the core sectors during the first quarter of the current fiscal year had grown 5.4 per cent compared with 4.7 per cent during the same time last year, while exports grew 28 per cent and imports grew 30 per cent. He said as of date, India had foreign exchange reserves of around $120 billion. He said India is no longer a Third World country even though living standards of large sections of the society are of the Third World. Hence, it is necessary to bridge this gap.

Mr Chidambaram said the Toyota Kirloskar Auto Parts venture is an extremely important project for India as it demonstrated Toyota's confidence in the country's manpower and its skills. He said Toyota, one of the top three automobile companies in the world, adds around five lakh capacity units every year. Compared with that, India's total sale of passenger cars last year was a little less than 10 lakh.

More Stories on : Economy | Climate & Weather

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page