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India can aim to grow by over 9%: PC
New Delhi, February 07, 2008
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 per cent.
"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
per cent, pushing 9 per cent, and aiming to go beyond,"
Finance Minister told BBC World Service in an interview.
When asked about his most challenging task, Chidambaram said,
"to ensure that the economy grows at no less than 8 per cent 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 per cent higher in current fiscal than in the previous one.
He said country's current account deficit was still very
modest - 1.3 per cent of GDP - and it needed to "expand the
current account deficit and absorb foreign direct investment."
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