With the economy logging the highest growth of 9.1 per cent during the first half of this fiscal, Finance Minister P Chidambaram on Thursday sounded confident that fiscal year 07 would be one of the best years in terms of growth.
India logged GDP growth of 8.9% in the first quarter.
He, however, tempered the optimism saying supply side-driven inflation was the only worrying factor.
"We are happy that the economy grew by 9.2 per cent in the second quarter. The fact that economy recorded the highest growth of 9.1 per cent in the first half of any fiscal since economic reforms began in 1991-92 makes us doubly happy."
"I hope that the current year turns out to be one of the best years of economic growth," Chidambaram told reporters after the release of GDP data.
Calling inflation the only concern, he expressed the hope that it would be brought under control with supply side management.
On less agricultural growth in the second quarter as against the first quarter, he said agriculture in the second quarter is always a lean period. Farm sector grew by 1.7 per cent in Q2 against 3.4 per cent in Q1.
When asked whether high growth will put pressure on interest rates, he said liquidity is comfortable in the economy.
Revealing the latest tax figures, Chidambaram said the fiscal deficit stood at Rs 87,100 crore (Rs 871 billion) during the first seven
months of this fiscal as compared to Rs 92,068 crore (Rs 920.68 billion) in the corresponding period last fiscal.
Revenue deficit was Rs 67,299 crore (Rs 672.99 billion) compared to Rs 70,284 crore (Rs 702.84 billion) during the same period last year. Fiscal deficit during the seven month period constitutes 58.6 per cent of what was estimated in the budget for the entire fiscal.
