No scope for gloom; high growth in a year or two: Chidambaram

Finance Minister P Chidambaram today said there was "no scope for gloom or despair" and expressed the confidence that the Indian economy will be back in high-growth trajectory in a couple of years.

"The world economy slowed down in 2008 and the crisis continues and it is not clear (if) it would pick up in 2013. However, there is no scope for gloom or despair," he told office-bearers of Congress at Karnataka Pradesh Congress Committee (KPCC) here.

Noting that the country registered about 5.5 per cent growth in the first quarter, he expressed the hope that GDP growth would improve in the second half.

"We are one among the four or five countries that have had a decent growth rate. Other countries are China, Indonesia and to some extent Brazil and South Africa. No other country is growing at even 1 or 2 per cent. There are only four or five countries that are registering a decent growth of about five per cent," he said.

Apparently referring to the decisions on fuel price and LPG price hike, Chidambaram said government had taken a number of decisions to revive growth, but some of them "are painful that must be shared by everybody."

"Last year was a difficult time. It is under our government that we registered for the first time nine per cent plus growth rate in four years period. We can get back to nine per cent growth. It would be a difficult time, but I am confident that next year the growth cycle will start again and in a year or two, we should get back to high growth," he said.

In the meantime, he said, the country must use its finances judiciously and prudently so as to tide over the difficulty.

"Advanced economies are doing very badly and their growth in 2012 is expected to be only about 1.2 per cent, Chidambaram said adding because of it India's economy was also affected.