Inclusive growth can easily help India register a growth rate of 10-11%, finance minister P Chidambaram said here on Monday.
?India?s economy is driven by one half of the population but if the other half also becomes part of the driving forces of growth, India?s economy will grow not by 8-9% but by 10-11%,? Chidambaram said at function organised by Oriental Bank of Commerce.
The economy has registered an average growth rate of 8.7% since 2003. However, confirming fears of a slowdown in consumption and investment demand, industrial growth plunged to 5.3% in January, 2008, compared to 11.6% in the corresponding month last year.
Amid rising inflation, which was at 6.82% last week, the finance minister said the government would take all steps to rein in inflation even if that means moderation of growth.
Speaking on the occasion, he added that a younger profile staff was required to make the public sector banks more efficient. ?There is no place for old habits,? he said, adding that change is key. The management in the PSU banks should be more accommodating while the employees should also change and there was no room for holding regular strikes, the minister said.
Meanwhile, OBC chairman and managing director Alok Misra told reporters that a decision on interest rates would be taken only after the asset liability committee of the bank holds a meeting in the next 10 days. The RBI?s credit policy to be announced on April 29 would also have an impact on the interest rates.
He added the bank might revise deposits and lending rates based on the cost of the fund. The prime lending rate of the bank at present is 13.25%.
The bank is likely to witness a deposit and credit growth of about 21% in 2008-09, Misra said, adding that it would open about 64 new branches during the year.
