The Hindu Business Line : `India poised to achieve over 8 pc growth this fiscal'

THE Finance Minister, Mr P. Chidambaram, on Thursday expressed confidence that the country could achieve growth rate of over 8 per cent this fiscal, if certain difficult decisions were undertaken along with a human face and a pragmatic approach.

Besides a higher agricultural growth, the Finance Minister also stressed the need for improvements in the growth performance of coal and electricity sectors for the economy to record growth rate of over 8 per cent this fiscal.

The mid-year review, tabled in Parliament recently, had projected an overall growth of over 7 per cent for the economy in fiscal 2005-06.

Replying to the discussion in the Lok Sabha on the Bill seeking supplementary demands for grants, the Finance Minister said that the States should seize the opportunity of an "extremely bullish investment climate" that is prevailing in the country. He assured that the Centre would assist them in their efforts of attracting investments.

Stating that growth was a big function of investment, Mr Chidambaram said that there was a favourable environment for accelerating investment.

"Business confidence is highest in the last 10 years. There is buzz about India. Six delegations from abroad met me in the last three days and they were talking about investing in billions of dollars," he said.

Mr Chidambaram said that all sectors whether it be health, education, HRD or any other sphere should have investments. "Private sector can also invest as can foreign agencies," he said.

The Lok Sabha passed the Supplementary Demands for grants (for Rs 9,080 crore) along with the relevant appropriation bills by a voice vote.

Mr Chidambaram also said that so far eight proposals have been received from States for public-private-partnership and hoped that the States would identify more infrastructure projects to receive funding from the special purpose vehicle.