The Hindu : Business : Finance Minister exudes confidence

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Friday, Feb 08, 2008
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Finance Minister exudes confidence

Union Finance Minister P. Chidambaram on Thursday expressed ‘some disappointment’ at the lower than anticipated economic growth projections by the Central Statistical Organisation (CSO), but exuded confidence that the GDP might finally grow close to nine per cent in the current fiscal. “There is some disappointment, but I am not too despondent. I am pretty confident that we may achieve economic growth rate of close to nine per cent,” Mr. Chidambaram told reporters after the CSO put out advance estimates of economic growth rate of 8.7 per cent this fiscal against 9.6 per cent in 2006-07.

Attributing the projected moderation in economic growth rate this fiscal to lower estimates of agriculture expansion, Mr. Chidambaram said the Ministry of Agriculture did not share figures put out by the CSO.

The CSO estimates have projected agriculture to grow at 2.6 per cent during the current fiscal. In the first half of the year, farm and allied sector grew at 3.7 per cent. “I have spoken to the Ministry of Agriculture. It did not share the assessment that the growth rate in agriculture for the whole year would only be 2.6 per cent,” he said.

Meanwhile, according to a press note issued by the Agriculture Ministry, foodgrain production is estimated to be at an all time high of 219.32 million tonnes during 2007-08.

“It could, therefore, turn out that estimates of 2.6 per cent for agriculture for the whole year may be on the lower side,” the Finance Minister said. — PTI

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