7% growth inadequate, FM seeks Oppn's support

Acknowledging that 7% growth was inadequate, Finance Minister Pranab Mukherjee today sought opposition cooperation to improve investment climate.

The government, he said, was keen to step up growth while tackling inflation which is perilously close to double digit, even though food prices have shown declining trend over the last seven weeks.

Replying to a debate on inflation, Mukherjee said price rise was linked to international situation but made it clear that the government was not in a position to increase subsidy to address the price situation.

Contending that economic growth has been high during UPA rule, he admitted that GDP of 7% was "not adequate" but refused to accept the opposition contention that it was all time low.

"There is no link between inflation and growth. We shall have to contain inflation, we shall have to go for higher growth...Please don't say that nothing has happened," he said.

Mukherjee said the government would endeavour to bring down inflation to 5-6% from 9.73% in October.

NDA and Left parties were not satisfied with his reply and staged a walkout, with Leader of the Opposition Sushma Swaraj saying that arguments offered by Mukherjee were stale, oft-repeated and did not offer any relief to common man.

The economy registered a growth of 7.3% in the first half of the current fiscal. The annual growth is projected to be 7.5%, down from 8.5% recorded in 2010-11.