BANKING ON GROWTH: Union Finance Minister P. Chidambaram at the inauguration of the Karaikudi branch of Andhra Bank on Friday. Chairman and Managing Director K. Ramakrishnan is also in the picture. — Photo: S. James

KARAIKUDI: Union Finance Minister P. Chidambaram on Friday expressed the hope that the growth rate for the current financial year will be above 9 per cent.

He told reporters here that the performance of various sectors was encouraging. The average growth rate during the last three years was 8.6 per cent. It was unprecedented, he said, adding it would continue.

"I would like to see a growth rate of 9 per cent and more this year. Various sectors such as manufacturing, services, trade are performing well. The manufacturing sector has accelerated its growth to 11.3 per cent."

Asked about the poor performance of the agriculture sector, he said the estimate for the current year was calculated from the base rate of 6 per cent last year. The previous year, the rate was zero per cent. Moving average had to be calculated as far as the agriculture sector was concerned, as it was dependent on the monsoon. According to the moving average, the average rate of growth in agricultural sector was 2.9, which was not satisfactory.

Asked whether it would be sustainable, he said it should be sustainable. Continuous reforms were needed. The Government would continue the reform process.

Mr. Chidambaram said the Government had announced its decision on initial public offerings (IPOs) of three power public sector enterprises only after discussing it with the Left parties. "Minister for External Affairs Pranab Mukherji and I discussed the issue in detail with the Communist Party of India (Marxist) and the Communist Party of India. Disinvestment has been put on hold. This [IPO for three power enterprises] is not disinvestment in a classical sense. It is basically to raise fund for the National Investment Fund, that too to a small extent."

Asked about the increase in inflation, Mr. Chidambaram said it was due to some mismatch between supply and demand. While demand was high, supply remained constant. The Government had controlled the inflation in the past. It would be moderated in future too. Inflation would turn normal once the supply was increased.

The Minister said he had discussed the demand of utilising the graphite resources in Sivaganga through a joint venture, with Chief Minister M. Karunanidhi.

Earlier, Mr. Chidambaram inaugurated branches of Andhra Bank, Indian Overseas Bank and Vijaya Bank at Karaikudi, Thirupattur and Kothamanagalam respectively in Sivaganga district.

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