Friday 25 January 2013

INDIA WILL RETURN TO 8 PERCENT GROWTH

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INDIA STORY WILL RETURN

Finance minister Chidambaram optimistic of recovery.

Vikram Khanna

AsiaOne, January 25, 2013

THE dip in India's economic growth rate is "purely temporary" and growth will return to its potential rate of 8 per cent "within a couple of years", according to India's Finance Minister Palaniappan Chidambaram.

In an exclusive interview with The Business Times, Mr Chidambaram noted that partly due to a weak global economic environment, growth has fallen in all countries including China. India remains among the five fastest-growing major economies, he added, with only China and Indonesia set to expand at a faster rate.

"Once we get our act together - once we shrink the fiscal deficit and restart the cycle of investment - we will get back to high growth."

India's growth rate for 2012-13 (ending March 2013) is officially projected at 5.7 per cent. This is a significant decline from the 8.4 per cent average growth rate per year recorded in 2006-11.

(...) [article here]

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