Robust GDP growth, moderate inflation will propel reforms:FM

New Delhi, Sep 29 (UNI) Finance Minister P Chidambaram today vowed to take the reform process ahead, in view of the sound macro-economic situation in the country, with the GDP growth rate at 8.9 per cent in Q1 of the current fiscal and a moderate inflation rate.

The Finance Minister also allayed fears of a slippage in fiscal and revenue deficit and expressed confidence that the government would be able to meet the fiscal deficit target of 3.8 per cent, and revenue deficit of 2.1 per cent, for the year.

Addressing a press conference here to give his reaction to the GDP growth figures released this morning, Mr Chidambaram said inflation data indicates a rate of 4.52 per cent, which is lower than the figure of last week.

''Inflation rate is moderating. The pressure point continues to be food prices. But I am confident that with supply augmentation of commodities like wheat and pulses, the demand-supply mismatch will be bridged. This will further lower the price level,''he said.

The reforms outlined by the Finance Minister, which are high on the agenda of the UPA government, relate to amendments of the legislations relating to the Banking Regulation Act, Pension Reforms and the Insurance Act.

Mr Chidambaram particularly expressed satisfaction at the robust manufacturing sector's growth of 11.3 per cent in Q1 (first quarter of current fiscal) and said he would want to see India develop into a manufactruing hub with about a dozen industries taking a lead in this regard.

He said capital expenditure of the industries-- Small and Medium Enterprises (SME) as well as large industries needs to be stepped up to propel growth of the industrial sector. In this regard, he said he would be holding meetings with the concerned Ministeries and Departments and industry representatives.

He also said the agricultural growth rate of 3.4 per cent in Q1 was encouraging, but said the performance of the electricity and mining sector needs to further improve.

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