Budget 2013: FDI is important for growth: Chidambaram

BANGALORE, INDIA: Finance Minister P Chidambaram sounded cautiously optimistic when he said in his Budget presentation in the Parliament today that the government's mantra is higher and sustainable growth.

In September 2012, the government accepted the Vijay Kelkar recommendations for 4.8 pc GDP growth in 2013-14. However RBI's projected 5 pc growth is far below India's expected growth of 8 pc, he said.

Today, the current account deficit is $75 billion to finance CAD. "FDI is important for economic growth and it would help us close the gap of current account deficit," he said.

The government is rationalising expenses and is aiming at higher and sustainable growth, he added.