Thursday, May 26 2005 18:20 Hrs (IST) - World Time -

New Delhi: Taking stock of the economic performance in United Progressive Alliance's (UPA) one year in power, Finance Minister P Chidambaram today (May 26, 2005) projected 7 per cent Gross Domestic Product (GDP) growth this fiscal and promised to keep inflation under control and ensure low interest rates.

"We have managed to contain inflation at moderate levels, interest rates are benign and the GDP is expected to grow by about 7 per cent this fiscal," he told a news conference.

"Government will attempt to keep inflation under control," he said.

While Reserve Bank of India (RBI) and Asian Development Bank (ADB) projected GDP to grow by 7 per cent in the current fiscal while International Monetary Fund (IMF) expects it to be 6.7 per cent, United Nation's Escap and NCAER pegged it at 7.2 per cent.

Last fiscal, GDP growth was estimated at 6.9 per cent while it was 8.5 per cent in 2003- 04.

With a prospect of normal monsoon, Chidambaram said agriculture is expected to grow at 3 per cent while manufacturing and services will continue to do well.

Outlining the five-point game plan for attaining 7 per cent growth, he said investment growth has to be sustained, infrastructure improved, fiscal and revenue deficit curtailed, inflation curbed and interest rates kept benign.

On the widening of trade deficit, Chidambaram said that there was no vulnerability on the balance of payment position as foreign exchange reserves continue to surge.

He said that various international credit rating agencies have also upgraded their investment ratings for India reflecting growing confidence in the Indian economy.

Fitch has upgraded its rating on India from 'BB' to 'BB+', S&P has also raised it from 'BB' to 'BB+' with stable outlook, he said.