Reforms in mining, power required: FM
FM says more reforms were needed in these two areas to sustain higher economic expansion.india Updated: May 31, 2006 14:41 IST
Lower growth in mining and electricity sectors has disappointed Finance Minister P Chidambaram, who on Wednesday said more reforms were needed in these two areas to sustain higher economic expansion.
Though he appeared satisfied with the 8.4 per cent GDP growth in 2005-06, the minister, however, said he was disappointed with the 0.9 per cent growth in mining sector against 5.8 per cent last year.
Besides, the government had expected electricity, gas and water supply to grow at six per cent, but the actual growth was 5.3 per cent during 2005-06.
Had there been more reforms in electricity and mining sector, GDP would have grown by 8.5 per cent, Chidambaram said.
Without disclosing reforms planned in mining and electricity sectors, he said he would meet the Prime Minister on these issues and respective ministries would present their plans.
On whether oil prices would impact GDP growth, he said if rise in global prices is reflected in domestic prices, then it would impact inflation. "There is no reason why it should affect growth rate, so long as productive sectors of economy can absorb rise in costs and still sell their goods."