COLOMBO: India is heading for a nine per cent growth this year on top of buoyant investments and domestic environment, Finance Minister P Chidambaram said here.
"Aggregate efficiency of both capital and labour and the 35 per cent investment in proportion to the GDP ratio quiet easily translates to about 9 per cent growth," Chidambaram said here.
The Finance Minister, who was replying to questions after delivering the annual Lakshman Kadirgamar Lecture here yesterday, attributed the high foreign exchange reserves of over 250 billion dollars to high capital inflows.
"Capital inflows are very large that is why we have a high foreign exchange reserves," he said.
"If the level of investment in any country is 35 per cent and the country can make gains with capital and labour. I think it is reasonable conclusion that that country will witness very high growth," Chidambaram remarked.
When asked about the "secret mantra" behind the high economic growth being registered by India during the last few years, Chidambaram said "there is no secret to growth. Sound macro economic policies followed anywhere in the world will lead to high growths".
"India's growth is led by investment and domestic environment. In fact in the last four years, investment is a prime driver of growth and domestic demand and consumption is a close second. Our investment to GDP ratio is now little over 35 per cent," he said.
According to official estimates, the economy registered a growth rate of 9.3 per cent during the first quarter of FY 2007.
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