'Fii Support Key To Higher Gdp Growth'

We are hopeful that these and other measures will address the critical constraints of India's economic development, and ensure sustained, broad-based growth at about 7 per cent a year, he said in his address to the joint annual meeting of the IMF and World Bank here.

Chidambaram said India was poised to register a GDP growth of 6.5 per cent during the current financial year and that the country had witnessed larger employment opportunities and reduction in poverty as a result of initiation of economic reforms in 1991.

He said several developing countries had yet to benefit significantly from world growth and increasing inter-dependence, and added the members of IMF and World Bank must avoid undue complacency about the world economic situation.

 

The finance minister also expressed concern over the burden of debt that has been heavily falling on some of the poorest countries of the world and said the aid flows in general have also been on the decline.

There are also serious concerns about the highly uneven distribution of private capital flows to developing countries and about their potential volatility, he said.

Chidambaram said some of the developed countries have been inclined towards protectionism due to rising unemployment levels and other factors.

Unemployment levels in many OECD countries remain high, reflecting loss of potential world output and providing combustible tinder to flashes of protectionist sentiment, he said.