Following is the text of the address of Finance Minister, Shri P. Chidambaram on India:
Economic Growth and Outlook delivered at the Peterson Institute for International Economics in Washington, United States.
“I am grateful for the invitation to deliver a talk at the Peterson Institute for International Economics. I understand that one of the objects of the Institute is to promote informed dialogue on international issues."
"The world is still divided in many ways – developed versus developing, North versus South, and rich versus poor. It is necessary to bridge this divide, and dialogue can do so. Dialogue can promote better appreciation of the issues; dialogue can also anticipate emerging trends."
Let me share with you our recent experience in managing the Indian economy and the outlook for the medium term. The India story is now rather well known, but some aspects bear repetition.
In the most recent four year period – 2003-04 to 2006-07 – India's GDP has grown at an average rate of 8.6 per cent a year. In particular, 2006-07 was a splendid year turning out a growth rate of 9.4 per cent.
All the indicators are positive. Gross Domestic Capital Formation (GDFC) – that is investment – in relation to GDP is estimated at a little over 35 per cent. Inflation measured by the wholesale price index (WPI) is 3.3 per cent.
Foreign exchange reserves stand at over US $ 230 billion. All sectors of the economy are contributing to the growth rate, although we are not entirely satisfied with the performance of the agriculture sector.
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