New Delhi, 31 August Encouraged by the 9.3% GDP growth during April-June period and inflation falling below 4%, Finance Minister P Chidambaram today expressed confidence that economy will expand by around 9% in the full fiscal and investments will remain buoyant.
“Although provisional estimates of 9.3% GDP growth during first quarter are a shade below than the growth last year (in corresponding period), but given the circumstances on account of external situation, it is quite satisfactory,” Chidambaram told reporters here.
The government as well as the RBI have earlier said the economy would grow by 8.5-9% during the fiscal, but the country must guard against external shocks such as rising prices of crude oil and other commodities.
“As long as savings are high, capital formation remains high, it supports the hypothesis that investment will remain buoyant. I am confident that GDP growth rate will remain close to 9% this year as well,” he said.
It will ultimately help to revise the average GDP growth of 8.6% over the past three years, he added.
Stating that the last few months had been of tightening monetary policy, he said government would make every effort to see that investment remains buoyant and credit to productive sectors would be ensured despite tight monetary policy.
Chidambaram also said sectors like electricity, water and sanitation showed better performance by achieving 8.3% growth in first quarter this year against 5.8% a year ago.