Ghost of GAAR buried: Chidambaram

Jan 22 2013, 18:07 IST
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India has buried the India has buried the "ghost" of GAAR, Finance Minister P Chidambaram said. (Reuters)
SummaryFinance minister Chidambaram is also hopeful that fiscal deficit will be contained.

mission, said India continues to post growth even now. "We are undeniably growing faster," he said pointing that out only China and Indonesia are ahead of India.

"But this growth is not sufficient for us. We need to accelerate it. So I told them steps we are taking to accelerate growth," he said.

He said the first step in that direction is fiscal consolidation and commitment to the path of fiscal prudence.

"At that at the end of this year, we will achieve the target of 5.3 percent of fiscal deficit and next year I will budget for fiscal deficit no more than 4.8 percent," he said.

He said he has also explained to the international investors the number of measures taken in this regard.

"I thought it was a fruitful conference. I could get a sense of the concerns of investors. Happily many of the concerns were addressed in the last three of four months," he said.

Chidambaram said the investors were concerned about the rating down grade.

"I think the steps we have taken assured everybody that there will not be a rating down grade. They were concerned about our ability to stay the course after we announced the decisions. They are happy we stayed the course after announcing FDI in multi brand retails," he said.

He said the investors and rating agencies were concerned that we will not correct fuel prices. "But even the small steps we have taken has given them confidence that we will correct the fuel prices. I think each of the measures has boosted their confidence in the Indian economy," he said.

While the government had in September last capped the supply of subsidised cooking gas and raised the price of petrol and diesel steeply, last week it had virtually begun the process of deregulation of diesel price.

On GDP growth projections, he said "projections I have received is that economy will grow above six percent (in 2013). My own assessment is it will be between six and seven percent. Will be happy if it is closer to seven percent but we should be happy if it is six to seven percent".

On revival of investor interest, he said, "People are coming to us for inquiries, approaching banks. There is a clear revival. I am not saying there is investment taking place but there is a revival of interest".

"There is revival of confidence that we

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