New Delhi, Jan 31(UNI) Exuding confidence that the economy will clock nearly 9 per cent growth in fiscal 2007-08, Finance Minister P Chidambaram today said the government will make rapid adjustments in economic policy depending upon the exigencies of the global situation.
"My goal is to continue to maintain the same level of growth but at the same time government reserves the right to make rapid adjustments depending upon the evolving global economic situation,'' Mr Chidambaram told reporters here.
The Finance Minister's remarks came in the context of release of GDP figures for 2006-07.
"We are not making policies and we are not taking administrative steps in a vacuum. We are doing so where there is heightened uncertainty and we are making rapid adjustments", he said.
The Finance Minister said the government was maintaining a fine balance between growth and inflation.
Economists believe that there is a trade off between growth and inflation, even though low inflation may be conducive to development.
Mr Chidambaram himself has been on record saying that high growth of the Indian economy of necessitated moderate inflation.
"We are confident that if we keep firm hands on the wheel, the Indian economy will sail through turbulent waters",Mr Chidambaram said.
He noted that inflation was still below 4 per cent and growth well above 8 per cent.
To a question relating to the impact on Indian economy of US FEDs decision to cut interest rate, Mr Chidambaram said "it is too early to say... The picture is still uncertain... Let us wait for a day or two." UNI GS PDT DS1520