Govt will work for 9% GDP growth, sustainability unquestionable

New Delhi, May 31 (UNI) Expressing satisfaction at the robust growth experienced by the Indian economy in 2006-07, Finance Minister P Chidambaram today said the government will work towards ensuring at least a nine per cent growth in the current fiscal.

''Time has come to shed lingering doubts about the sustainability of high growth and skepticism about the shift to a higher growth trajectory,'' Mr Chidambaram told a news conference here, to give his reaction to the CSO figures on GDP released here this morning.

''I wish to take the opportunity to emphasise, once again, the criticality of growth. High growth generates its own momentum. With high growth comes high savings and high investment which, in turn, reinforce growth itself,'' Mr Chidambaram said.

The Finance Minister expressed satisfaction at the Central Statistical Organisation (CSO) figures released on GDP and other macro-economic parametres for 2006-07.

The CSO released the Revised Estimates of Annual National Income and Gross Domestic Product. The GDP growth rate at constant prices has been put at 9.4 per cent for 2006-07. In 2004-05 it was 7.5 per cent and in 2005-06 it was nine per cent.

The CSO has also estimated the growth rate in per capita income at 8.4 per cent during 2006-07. In 2004-05 it was 5.7 per cent and 2005-06 it was 7.4 per cent.

Mr Chidambaram said as the economy has experienced high growth, the government can make a bold claim that it will do everything possible to make it inclusive. ''I acknowledge that more needs to be done in this regard, but as the Prime Minister has repeatedly assured the nation, we will do more,'' he said.

Asked whether high growth will put pressure on prices, Mr Chidambaram said the fact of the matter is that high growth leads to high demand and if not matched by adequate supplies, then there could be pressure on prices.

The Finance Minister said the RBI and Government were monitoring the situation relating to growth in money supply and prices. He said the situation would continue to be under the watch of the government and the Central Bank.

In this context, he noted that prices have been coming down for the past three weeks as measured in terms of the Wholesale Price Index.

Mr Chidambaram noted that the fiscal deficit came down to 3.5 per cent of GDP during the fiscal year to March 2007 from 4.1 per cent a year earlier.

Mr Chidambaram also said there was a need for utmost care to sustain the high growth achieved in the three years of the UPA Government.

The 9.4 per cent GDP growth in 2006-07, coming over and above three years of high growth, is the strongest in 18 years.

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