Chidambaram sees 9 pc GDP growth a 'reality'

New Delhi, Jan 9 (UNI) Union Finance Minister P Chidambaram today said a nine per cent GDP growth rate in the current fiscal would be a reality and called for a price reduction to contain the ''worrying'' inflation.

''I am confident that the current fiscal year will end up with a growth rate of close to 9 per cent although I do not know where the decimal might fall,'' he told reporters at the Pravasi Bharatiya Divas here.

He said that there were enough evidence in contemporary economic history to suggest that a double digit growth rate can be sustained for a long period of time. ''East Asian economies have demonstrated their capability to achieve double digit growth for a long period of time in the 70s and 80s. China continues to surprise us and has achieved a double digit growth for the last seven to eight years,'' he said.

''So what we are aiming at is not impossible'', he said noting that in the last three years GDP has grown at 7.5 per cent per annum in India. He also pointed out that the GDP growth in the first six months of the current fiscal was to the tune of 9.1 per cent.

But ''as we close a good year, the only dark cloud is rising inflation,'' Mr Chidambaram said at a separate industry conference.

The wholesale price inflation has been hovering above five per cent, which is stated as tolerable level by the government, and efforts are on to bring it closer to four per cent.

The rate stood at 5.48 per cent in the week ended December 23.

The finance minister said inflation was being driven mainly by supply side constraints as robust growth in the past three years of around 8 per cent has left India's ports, roads and power generation stretched.

Concerned about inflation he called upon the industry to cut costs to contain inflation. ''I have a nagging feeling that there are sectors that have smelt an opportunity to make profit because of high demand. There is nothing wrong in making profits, but beware of entrenched core inflation. Cut costs to stabilise prices.'' UNI