Finance Minister P Chidambaram on Thursday exuded confidence of achieving a nine per cent economic growth and containing inflation in 2008-09 and said this would help ensure overall welfare of common man.
Speaking to reporters after tabling Economic Survey 2007-08 in the Parliament, Chidambaram said that he was confident of achieving 11th Plan target of 9 per cent growth.
"With the better targeting of government reserves and increase in quality, we can ensure the overall welfare of the common man in terms of both private consumption and supply of public goods," he said.
"Given the solid foundation of domestic investment and savings, we are confident of meeting the 11th Plan target of nine per cent average growth," the finance minister said.
"We will be able to mobilise the resources for meeting the growth target," he added.
Chidambaram said that the economy has precisely moved to higher growth trajectory during the five years to 2007-08 in terms of GDP with an average growth rate of 8.7 per cent per annum during these five years.
"This indicates stability and sustainability," he said.
"I am optimistic about growth and containment of inflation in the coming year (2008-09)," Chidambaram said, adding his priority was to provide a conducive investment climate and manage the macro economy to facilitate non-inflationary growth.
After remaining at below 4 per cent for six months, the inflation rate has touched 4.35 per cent for the week ended February 9. With hike in petrol and diesel prices recently, it is expected to go up further.
"Keeping inflation under control in an uncertain global environment will be one of the major challenges in 2008-09," he said, adding slowdown and possible recession in the global economy posed risks to growth.
Referring to rise in domestic savings and investment, the finance minister said, "We are confident of meeting the 11th Plan (2007-08 to 2011-12) target of 9 per cent average growth."
He said the high GDP growth has benefited the common man as well, as reflected by a near doubling of annual growth rate of per capita consumption to 5.1 per cent in 2007-08 compared to 2.6 per cent for the previous 11 years.
"If the rate of growth of per capita GDP continues at the five year average of 7.2 per cent per year, average income would now double in a decade instead of a generation or more, earlier," said the finance minister.
He also expressed concern over slow pace of growth in agricultural sector and bottlenecks in the infrastructure sector, and emphasised the need for mobilising public and private resources for inclusive growth.