India can log 8% growth if we avoid past mistakes: Chidambaram

Tags: News
Asserting that reform measures and fast-tracking of the decision making process have yielded results, Finance Minister P Chidambaram today said India would certainly return to 8 per cent growth rate if past mistakes are not repeated.

"In the last year and a half, we decided that we need to do more and be more decisive...The results are there to see. Our economy has stabilised," Chidambaram said here.

"Last year I said we will grow by five per cent this year, 6 per cent during the next year and steadily we will move back to 8 per cent growth," he said.

Speaking at the WEF Annual Meeting while addressing a session on BRICS countries, Chidambaram said: "If we avoid some of the mistakes that we have made and if we are decisive, I have no doubt that in three years we will be back to 8 per cent growth".

The Minister said that income inequality and middle class stagnation are big risks in every country.

On people coming out of poverty, Chidambaram said: "India has done well on this front, while China has also done well.

"It is one of the reasons why food inflation is high in India. Still we want to do many more things to further lower the income inequality...We would like to tax the rich a little more, but since we want to encourage the entrepreneurs to do business, we are going slow on that," Chidambaram said.

Defending the role of the government in economies, Chidambaram said: "When US and European banks were in crisis, the government had to pitch in. There is a role for the state to play. If you look at Indian banking industry, we have got state-run banks, private banks, foreign banks and now we are licensing a few more banks.

"You cannot wish away the role of the state as that is a very important role," he said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Signalling good times, current account deficit is likely to grow from here on

    The current account deficit (CAD) numbers for April-June quarter declined sharply to 1.7 per cent of GDP.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Disruptive innovation in education

The past two weeks had a fair share of interesting ...

Rajgopal Nidamboor

Regain the spirit of focused power

For aeons, the human race has been experimenting with a ...

Gautam Gupta

Manufacturing must keep workers’ welfare in mind

It may be early days yet, but the labour reforms ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture