Thursday, January 26 2006 15:07 Hrs (IST) - World Time -

Davos (Switzerland): Finance Ministry is likely to revise economic growth estimates upwards after assessing the third quarter results of India Inc, even though it sees some pressure on interest rates.

"Reserve Bank has raised the GDP forecast to 7.5-8 per cent. But I will wait till the Q3 results to come. I maintain that GDP growth will be over 7 per cent this fiscal," Finance Minister P Chidambaram told sources here.

Following a robust monsoon and sustained high growth in manufacturing and services, RBI has raised the GDP growth estimate by 0.5 per cent from the earlier estimate of 7-7.5 per cent made in the October busy season credit policy.

Chidambaram said the manufacturing and services sectors are doing well. With a good monsoon last year, the agriculture growth is also expected to be better this fiscal. "All accounts for a high growth this fiscal," he said.

Asked about the interest rate outlook, he said, "There is some pressure on interest rates."

He, however, hastened to add that if the US central bank reverses its decision on raising interest rate further, then it could ease the pressure from domestic rates as well.

Higher industrial growth has fueled up credit demand and put some pressure on interest rates.

Chidambaram arrived here last evening and will address the World Economic Forum annual meeting. Commerce Minister Kamal Nath and Planning Commission Deputy Chairman Montek Singh Ahluwalia have also joined corporate honchos to showcase India as the fastest growing market to the world's business community at the WEF.