Need for better development indices: FM

He said growth is an imperative, because with growth there is a chance for equity, however without growth there is no such chance.

8220;High growth has helped the government bring down the fiscal deficit to 3.3 per cent of GDP, but it is still a bit above the standardised 3 per cent figure 8212; a figure the Maastricht Treaty obliges every EU member to have. Also, we8217;ll wipe out revenue deficit by 2008-09, but deficit as such can8217;t be eliminated as it has adverse growth implications,8221; Chidambaram said.

Stating that the leading drivers of growth are consumption and investment, he averred that India has all the ingredients of keeping itself on a high growth path given the savings rate of 33 per cent of GDP and the investment rate of greater than 35 per cent of GDP.

Chidambaram said the US sub-prime crisis will not affect India8217;s growth prospects significantly, as India8217;s export basket is not over-concentrated in favour of the US.

8220;If the US economy goes into recession, India will also have to share the effects,8221; he argued. With respect to the SEZ policy, he declined to answer any question.