Economy to grow further in H2: FM

Painting a rosy picture about the economy based on the buoyant outlook projected by the mid-year review, Finance Minister P Chidambaram on Friday said he was optimistic that second half performance would be better than the first half.

"I am optimistic that second half performance would be even better. All in all, we are happy that the mid-year review has found to be a good year," he said after tabling the review in Parliament.  

Economic growth seen at 7%

Chidambaram said the review has projected a good and above seven per cent growth for this year while several other agencies have stated it to be about 7.5 per cent.

Inflation was expected to be around five per cent, he said, adding that the review has identified some areas of concern namely coal and electricity.

Asked if he expected interest rates to be lowered, he said it was in the domain of Reserve Bank. But interest rate is based on two factors -- market condition and inflation.