Fiscal deficit, CAD major challenges: FM

Tokyo (PTI): Although, the country is facing major challenges like containing fiscal deficit, current account deficit (CAD) and inflation, the government is addressing all these problems, asserted Finance Minister P Chidambaram on Monday. He said that the fiscal deficit will reach the target of 3 per cent in 2016-17, said Chidambaram who is on a three-day visit to Japan to woo investors. "We have to sort out many internal issues. We have to contain fiscal deficit. We have to tame inflation. We have to find ways in which projects are executed on time and efficiently. We are addressing these problems. These in my views are biggest challenges facing India today", he said. The Minister said that Indian economy was growing between 5 and 5.5 per cent in the just-ended financial year which he was not happy with. "I am not happy. We are growing at only 5 to 5.5 per cent... Because our people require at least an 8 per cent growth," he said, adding India's potential growth is 7 per cent a year. The economic growth in the current financial year has been estimated at around 6.1-6.7 per cent. On fiscal deficit, he said, it was brought down to 5.2 per cent in 2012-13. Every year it has been reduced by 0.6 per cent and the country will achieve fiscal deficit target of 3 per cent by 2016-17. Observing that India can absorb $50 billion foreign investment every year, Chidambaram said "foreign investors continue to place confidence in India. Both in respect of FDI and FII, the flows into India have been among the highest in 2012 and the flows are quite large and copious."