FM for opening up of economy

Finance Minister P Chidambaram today pitched for further opening up of the economy and for massive investments in agriculture to sustain the 8.1 growth rate attained in the first quarter this fiscal.

"I am happy with the first quarter growth, but we must strive for further growth," Chidambaram said.

Asked if he expected the growth rate to be higher this fiscal going by the trend of the first quarter, he said, "I can't put a figure to this. But my goal is to maintain a growth of not less than seven per cent (during 2005-06) and aim for eight per cent. And in the medium term, We must try to take it beyond the eight per cent mark."

This, he said, would require higher savings and investment rates through domestic investment and FDI, which could be achieved through appropriate policy measures, focus on delivery systems and outcomes.

More investment was needed in sectors like mining, steel, ports, shipping, civil aviation and power, he added.

He said inflation was within "tolerable limits" even though there would be some negative impact of hike in fuel prices.