Business Standard

India can attain 10% growth: FM

18 July 2007

New Delhi: India’s Finance Minister, Mr. P Chidambaram expressed hope to have 10 pc growth in the economy next year if agriculture productivity improves. “Our goal is to touch the magical number of 10 per cent growth" he said at the India Policy Forum, 2007. Chidambaram  expressed confidence that the revenue deficit would be eliminated by 2008-09.  A report by the Prime Minister’s Economic Advisory Council had on 16^th July  said the central government’s revenue deficit is unlikely to be eliminated by 2008-09.  It had also pointed out that there are substantial off-budget liabilities aggregating 2 per cent of GDP, and potential expenditure increase, after the Sixth Pay Commission makes its recommendations.  The revenue deficit stood at 2 per cent of GDP in 2006-07 and is to be cut to 1.5 per cent of GDP in the current fiscal year. Mr. Chidambaram said it was unfair to compare India and China. “India’s growth is now driven more by investment. Indian industries and services sectors are trying to extract more value from each rupee invested. That is driving productivity gain in the Indian economy.”

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