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GDP growth seen between 5-5.5 per cent in FY14: Chidambaram

The finance minister also pledged to meet the country's fiscal and current account deficit targets, as fears of US Federal Reserve reducing its stimulus fuel concern India's vulnerability to foreign sell-offs.

Finance Minister P Chidambaram. PHOTO: Reuters Finance Minister P Chidambaram. PHOTO: Reuters
Despite wide expectations of growth slipping below 5 per cent, Finance Minister P Chidambaram has said India is likely to achieve an economic growth of between 5-5.5 per cent this financial year.

GDP growth slowed to 5 per cent in 2012/13, its worst performance since it grew by 3.9 per cent in 2002/03.

"I am confident that the greenshoots that are visible here and there will multiply and that the economy will revive, there will be an upturn in the second half of this year," P. Chidambaram said while speaking at a bankers' conference.

"It's quite possible that the estimates made by the Reserve Bank (of India) or the Prime Minister's economic advisory council or the government about growth being between 5 and 5.5 per cent will be realised," he said.

Chidamabram also pledged to meet the country's fiscal and current account deficit targets, as fears of US Federal Reserve reducing its stimulus fuel concern India's vulnerability to foreign sell-offs.

CHIDU SPEAK:

> Economic growth will revive in the second half of the current financial year
> Measures taken by the government will yield results and help India achieve potential growth rate of 8 per cent
> Government will not exceed the red line on fiscal deficit in 2013-14
> Will contain Current Account Deficit (CAD) at below $56 billion in 2013-14
> New banking licences will be given in January next year
> Banks should deal sternly with wilful defaulters, but hand hold of those in trouble