New Delhi: The Government will make rapid adjustments in economic measures depending upon evolving global economic situation, Finance Minister P. Chidambaram said Thursday exuding confidence that the growth during the current fiscal would be close to 9%.
“My goal is to continue to maintain the same level of growth but at the same time government reserves the right to make rapid adjustments depending upon evolving global economic situation,” Chidambaram told reporters immediately after the GDP figures of 2006-07 were released.
“We are not making policies and we are not taking administrative steps in a vacuum. We are doing so where there is heightened uncertainty and we are making rapid adjustments.
“We are confident that if we keep firm hands on the wheel, the Indian economy will sail through turbulent waters. We are maintaining a balance between growth and inflation,” he said.
Inflation is still below 4% and growth is well above 8%, he added.
Government would also appoint two Additional Solicitor Generals exclusively to deal with direct and indirect tax cases in the Supreme Court and High Courts across the country, the minister said.
M. Chandrashekharan will be the new ASG for dealing with indirect tax cases while Parag Tripathi will deal with direct tax cases, he added.
As per the revised figures of GDP released Thursday, the economy grew by 9.6% in 2006-07, against previous estimate of 9.4%.
The GDP growth figures for 2005-06 has also been revised upward from 9% to 9.4%.
In the current financial year, the economy grew by 9.3% in the first quarter and 8.9% in the second quarter.
For 2006-07,the construction sector growth has been revised upward to 12%, against 10.7% estimated earlier.
At constant prices (1999-00), the share of agriculture, forestry and fishing in the GDP stood at 18.5% in 2006-07, down from 19.6% in the previous year.
Meanwhile, the share of manufacturing sector in GDP rose to 15.4%, up from 15.1% during the same period.
The share of financing, insurance and real estate in the GDP also increased to 14.3 % in 2006-07, compared to 13.8% in the previous year.
At current prices, share of food items in private final consumption expenditure stood at 36.4% in 2006-07, marginally up from 36.3% in 2005-06.
Meanwhile, share of transport and communication went up to 17.5% from 17.3 % during the same period, while share of gross rent, fuel and power consumption declined from 12.6% in 2005-06 to 12% in 2006-07.