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Economic growth will pick up in third quarter: Chidambaram

Posted on Nov 16, 06:37PM | IANS

India's economic growth, which has slipped to nearly a decade low, is likely to pick up from the third quarter of the current financial year, Finance Minister P. Chidambaram said Friday.

Addressing a press conference here, Chidambaram said despite the slowdown India is still among the fastest growing economies in the world.

"The second quarter number will be known by the end of this month and I think there will be a pick up in the third and fourth quarters," Chidambaram.

India's gross domestic product (GDP) grew at a sluggish 5.5 percent in the first quarter of the current financial year. The economic growth had slumped to nearly a decade low of 5.3 percent in January-March 2012 quarter.

Chidambaram said the government has taken a number of steps to revive India's economic growth, which has been challenged partly due to the global slowdown.

"We are taking number of steps to revive economic growth. Only this morning you have read that Euro zone is formally in recession. We are nowhere near that situation. We are still growing at 5.5 percent," he said.

Chidambaram said he would try to present a balanced budget for 2013-14 that would help India return back to high growth trajectory.

The finance minister said the government was reaching out to the different political parties to get their support for passing the important economic legislation, especially amendments to insurance and banking regulations and passage of Direct Tax Code (DTC).

"We sincerely hope that the forthcoming session will be a productive one and many bills will be passed," he said.

Chidambaram sought support of different political parties in getting the bills passed in the parliament and said no issue should be blown out of proportion.

"My suggestion is that not one issue should be blown out of proportion. There are many very important issues that concern the welfare of people and future of the country," he said.