GDP at 9 per cent for fiscal FY 08 "quite satisfactory"

New Delhi, May 30 (UNI) Asserting that the government will take corrective measures to reverse the slowdown in the growth of the manufacturing sector, Finance Minister P Chidambaram today described the GDP growth for fiscal 2007-08 of 9 per cent as "quite satisfactory." "The GDP growth at 9 per cent for 2007-08 is quite satisfactory in a year that saw turbulence in money market," Mr Chidambaram told newspersons here.

Mr Chidambaram exuded confidence that the economy will be able to clock a growth rate of 8,5 per cent in 2008-09.

The figures of Revised Estimates put out by the Central Statistical Organisation (CSO) showed that GDP growth for the fourth quarter of FY 2007-08 has been 8.8 per cent compared with 9.7 per cent in the corresponding period last year.

The economy grew by 9 per cent in 2007-08. The agriculture sector grew by 4 per cent, industry by 8.5 per cent and services by 10.8 per cent .

"As the year progressed there were some doubts whether we will be able to achieve 9 per cent growth rate. I had on many occasions expressed my confidence that growth will be close to 9 per cent," Mr Chidambaram said.

"Interest rates need to balance economic growth and inflation," Mr Chidambaram added.

Data put out by the government this morning showed that inflation accelerated to 8.1 per cent in the week ended May 17 from a year earlier.

UNI SR-GS AK HT1500