FM urges for 7% growth

"There is no meaning of freedom if we have poverty in the country," Chidambaram said adding that there are still over 300 million Indians below the poverty line.

"India will continue to have poor people if there is bad politics and good economy or vice-versa. We must have a combination of both good economics and good politics," he said.

According to him, good economy requires setting sights on the goal of growth. "Anything that comes in the way of growth must be ruthlessly brushed aside," he added.

"We must target growth and create conditions conducive for competitively achieving the same", said Chidambaram. If india could sustain 7 per cent growth and reach 8 per cent in the next 15 to 20 years, poverty could be eradicated, he said. Chidambaram was speaking at the 24th national management convention here on Saturday.

Every sector exposed to liberalisation has registered considerable growth, he said. Areas including coal, power, petroleum, ports, railways and civil aviation have registered poor growth only because they are yet to be exposed to reforms, he added.

Industry including infrastructure did not perform well last year because they were over-regulated said Chidambaram adding that the government would facilitate adequate investment in the sector.

He said that the present government is committed to continuing the liberalisation processs in key sectors, viz. the financial sector, public sector undertakings (PSUs), legal sector, infrastructure and institutional reforms.

Chidambaram disclosed that a new Companies Law Bill will be introduced in Parliament next week. The working draft Income-Tax bill is ready while the foreign exchange and money laundering Acts are also at an advance stage of preparation, he added.

According to him, carrying out reforms in the financial sector including the pension funds, banking and the insurance companies is more difficult. "India requires at least $ 150 billion to improve infrastructure in the next decade. The funds can be sourced from the pension funds and insurance sector," the finance minister added.

Referring to the PSUs, he said it is of little interest to the government as to who is managing them. "The PSUs should yield a high return on the capital," he further said.