Date:28/08/2005 URL: http://www.thehindubusinessline.com/2005/08/28/stories/2005082801600300.htm

Back Chidambaram sees economy growing at 7%

Our Bureau

Mumbai , Aug. 27

THE Finance Minister, Mr P. Chidambaram, said on Saturday that he expected the economy to grow at 7 per cent or more in the current fiscal.

"The economy is in good shape, all set to deliver 7 per cent or more growth in 2005-06," he said addressing the annual general meeting of the Indian Banks Association here. He said growth in credit during the first four months of 2005-06 had been at 7.2 per cent (5.1 per cent in the previous year), while the growth in bank investments had been very marginal at 0.4 per cent (7.8 per cent). This meant that pressure from government borrowing was reducing, while demand for credit was growing. Deposits too had grown, at a rapid rate of 6.4 per cent (4.5 per cent) which meant that presently liquidity was not an issue.