India will continue to grow at around 9% in 2008-09, predicted finance minister P Chidambaram. High investment in the public and private sectors will drive the growth, he added. In the current financial year also (2007-08), India is poised to achieve around 9% growth. He said that in the last four years, the Indian economy has achieved an average growth rate of 8.6%. As the Lok Sabha elections are due in 2009, he will present his last formal budget in February 2008. Therefore, it is believed that it will be a populist budget and Chidambaram might compromise on its growth theme.
However, Chidambaram said there was no problem in the plan outlay. He added that the central and state governments should continue to work unitedly to improve the results of various government schemes to ensure high growth. At present, performances of the government schemes are below expectations.
In the last couple of years, India''s total savings have gone up to 32.4% of GDP in 2005-06 as against around 23.5% of GDP in 2001-02. Economists feel that India has entered a cycle of high savings. With this, total investment in the economy has gone up to 33.8% of GDP in 2005-06. The investment, which leads to capital formation, is likely to further improve in coming years.
Surge in investment has put India into the high growth cycle of 8-9%, said an economist. Chidambaram, while predicting a growth of 9% for 2008-09, pointed to high investment factor, which will enable the country to achieve this growth. He was speaking to mediapersons on the sideline of a function to open 1,500th branch of Indian Bank. The branch will cater to poor customers, who are members of self-help groups under microfinance scheme.
However, Chidambaram said there was no problem in the plan outlay. He added that the central and state governments should continue to work unitedly to improve the results of various government schemes to ensure high growth. At present, performances of the government schemes are below expectations.
In the last couple of years, India''s total savings have gone up to 32.4% of GDP in 2005-06 as against around 23.5% of GDP in 2001-02. Economists feel that India has entered a cycle of high savings. With this, total investment in the economy has gone up to 33.8% of GDP in 2005-06. The investment, which leads to capital formation, is likely to further improve in coming years.
Surge in investment has put India into the high growth cycle of 8-9%, said an economist. Chidambaram, while predicting a growth of 9% for 2008-09, pointed to high investment factor, which will enable the country to achieve this growth. He was speaking to mediapersons on the sideline of a function to open 1,500th branch of Indian Bank. The branch will cater to poor customers, who are members of self-help groups under microfinance scheme.
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