Fiscal, current account deficits major challenges: Chidambaram
Tokyo: Asserting that India has to sort many internal issues, Finance Minister P Chidambaram Monday said containing fiscal deficit, current account deficit and inflation are big challenges that country is facing currently.
However, he maintained that the problems were being addressed and that fiscal deficit will reach the target of 3 percent in 2016-17.
Here on a three-day visit to woo investors, Chidambaram told a press conference that foreign investors continue to place confidence in India.
"We have to sort out many internal issues. We have to contain fiscal deficit. We have to tame inflation. We have to find ways in which projects are executed on time and efficiently. We are addressing these problems. These in my views are biggest challenges facing India Monday", he said.
The Minister said that Indian economy was growing between 5 and 5.5 percent in the just-ended financial year which he was not happy with.
"I am not happy. We are growing at only 5 to 5.5 percent... Because our people require at least an 8 percent growth," he said, adding India's potential growth is 7 percent a year.
The economic growth in the current financial year has been estimated at around 6.1-6.7 percent.
On fiscal deficit, he said, it was brought down to 5.2 percent in 2012-13. Every year it has been reduced by 0.6 percent and the country will achieve fiscal deficit target of 3 percent by 2016-17.