India to grow at 5% in 2013-14, cross 6% in 2014-15, says FM

Assuring global investors that India is prepared to face the impact of the US Fed tapering, finance minister P Chidambaram on Wednesday said the country is poised to clock 5% growth in 2013-14 and over 6% in 2014-15. Out of the woods, finally?

Assuring global investors that India is prepared to face the impact of the US Fed tapering, finance minister P Chidambaram on Wednesday said the country is poised to clock 5% growth in 2013-14 and over 6% in 2014-15.

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Addressing a meeting of the World Economic Forum (WEF), Chidambaram said the Indian economy has "stabilised and it is poised to return to high-growth path and step by step we will go back to 8% growth rate".

India’s growth rate slipped to a decade-low of 5% in 2012-13.

On the the impact of the calibrated tapering of bond purchases by the US central bank, Chidambaram said: “We were concerned in May. But now I think we have done a lot of preparatory work. There will be some consequences in developing and emerging economies but I think we are better prepared for the taper than when we were surprised in May”.

The Fed has announced trimming of its $85 billion monthly stimulus after US economic indicators improved.