The Hindu Business Line : Chidambaram looks at 8 pc plus GDP growth in medium term — `Immediate priority must be to stimulate growth in agriculture'

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Chidambaram looks at 8 pc plus GDP growth in medium term — `Immediate priority must be to stimulate growth in agriculture'

Our Bureau

The Union Finance Minister, Mr P. Chidambaram, addressing a press conference in the Capital on Friday. — Kamal Narang

New Delhi , Sept 30

EXUDING optimism over the growth prospects for the rest of the year, the Finance Minister, Mr P. Chidambaram, has said that his aim is to ensure over eight per cent GDP growth in the medium term.

"In the medium term, my goal is to grow at over eight per cent. This would require higher savings and investment rates," he said, reacting to the GDP numbers released on Friday.

Mr Chidambaram added that the aim should be to make India the fastest growing economy in the world.

"We are now the second fastest economy in the world (after China). We must aim to be the fastest growing."

He said that in the short term, what is required is to maintain industrial growth at the current level to compensate for the possible low growth of the farm sector.

Farm sector: He also said that one should not jump to any hasty conclusions on the farm sector growth rate for the full year on the basis of the first-quarter performance.

According to the Finance Minister, the immediate priority should be to stimulate growth in agriculture.

The reforms process has to be taken forward to attract more investments.

"We must continue to reform the economy and further liberalise.

"India can do with larger dose of investments in power, mining, steel, ports, shipping, civil aviation, and construction."

Services: The Finance Minister said that the service sector should be encouraged further.

"The service sector is doing well. We must ensure that this sector does further well so that it can touch double-digit growth."

Inflation was within "tolerable" limits, he said. "I have already said a few weeks back that when the petrol price hike passthrough happens, it would have some negative impact on inflation."

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