India to regain high growth in 3 years: FM

India to regain high growth in 3 years: FM

Attributing the decline in growth to global factors, Finance Minister P Chidambaram on Wednesday exuded confidence that the economy will get gradually get back to high growth path in the next three years.

“It is true that there has been a slowdown in 2012-13 and in current year. The slowdown reflects the world wide trend. As global economy recovers and as new measures take effect, I am confident that Indian economy will also get back step by step to the high growth path in three years”, he said while delivering the valedictory address at Petrotech 2014.

India’s economic growth slipped to decade low of 5 per cent in 2012-13 and in the current fiscal it estimated to be around the same level. It grew by over nine per cent before it was hit by the global crisis of 2008.

Chidambaram expressed hope that the revised growth estimates for 2012-13 were likely to be better than the earlier projections.

The government is scheduled to come out with revised growth estimates for 2012-13 on January 31 and the advance estimates for the current fiscal on February 7.

Referring to high oil imports, he said, “A developing country like India can not afford huge import bill or such a high level of current account deficit (CAD). Therefore, we were constrained to take some hard measures, including conservation measures and these measures have helped us contain the CAD,” he added.

Inviting investments in the energy sector, Chidambaram said, India is a good long term bet for cooperation in this sector. He also expressed the country's keenness to work closely with oil companies and oil producing nations.

The Minister also cautioned that with the recovery in global economy, the demand for oil would pick up leading to volatility in prices.

"Whatever supply overhang is there will be quickly absorbed. The old dilemma will raise its head once again. Oil consuming countries will demand lower and stable prices (while) the oil producing countries will demand high prices."

"In 2008 when crude oil prices touched $147 per barrel, if I may say so (it) virtually robbed every developing country of 1-2 per cent of its growth rate", he said.

The Minister further said that as long as there is asymmetry between oil consumers and oil producers, the concerns about the energy security would remain.

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