India’s economic growth will pick up to 6 percent in the current financial year, said Finance Minister P Chidambaram, adding that the government is largely responsible for putting the economy back on a more stable footing.
“I’ve done more heavy lifting in the last 12 months than the RBI [Reserve Bank of India],” Chidambaram told CNBC on the sidelines of the Asian Development Bank’s annual meeting in Kazakhstan.
Reserve Bank of India Governor Raghuram Rajan has received much acclaim for restoring financial stability and regaining investor confidence following an unprecedented capital flight during the summer of 2013, which was triggered by concerns over the Federal Reserve scaling back its monetary stimulus.
Chidambaram, however, points to his progress in bringing the twin deficits – current account and fiscal – under control.
“I have laid out a new fiscal consolidation path [and] set tough limits on the fiscal deficit. I’ve not only achieved those targets but I’ve bettered those targets,” he said.
In his interim budget in February, Chidambaram said the fiscal deficit would not cross 4.6 percent of gross domestic product (GDP), revising an earlier target of 4.8 percent. The deficit last year stood at 4.9 percent of the country’s GDP.
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