New
Delhi: India needs to speed up reforms and maintain
fiscal discipline to sustain high economic growth, finance
minister P Chidambaram said on Friday as he hinted at
more steps to keep inflation under 4 per cent.
"Unless
financial sector reform is completed, it will be hard
to sustain high growth," Chidambaram warned, stressing
that only reforms combined with discipline would enable
the economy to sustain growth rates of more than 8 per
cent.
India''s
gross domestic product (GDP) grew by 8.4 per cent in the
year ended March 2006.
Sounding
a note in favour of SEZs in the ongoing controversy, Chidambaram
said the government wanted India to be a manufacturing
hub in 12 to 24 sectors, and was therefore setting up
special economic zones for petrochemicals, information
technology, electronics, pharmaceuticals and auto parts.
He
said tax breaks and access to bank loans in these zones
were essential to achieve high growth in manufacturing.
"The government will ensure that credit is not denied
or delayed, and is available at reasonable rates to productive
sectors," he said.
Noting
that there was increasing pressure on food prices, Chidambaram
said he would discuss further steps with the central bank
governor to keep inflation in check. Data released on
Friday showed annual inflation at 4.56 per cent for the
week ended 16 September, but Chidambaram said the government
hoped to keep inflation at 4 per cent or less during the
current fiscal.
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