'We'll bounce back to 8% growth rate, no policy paralysis in UPA 2'

Kolkata: The government yesterday claimed the country would bounce back to eight percent growth rate this financial year and held there was no paralysis in the UPA II government as alleged by some sections.

"We are confident that the economy will bounce back to eight percent growth rate," Union Home Minister P Chidambaram told the media here.

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He said that after good growth rates of over eight percent during the past some years, 2011-12 was a difficult year owing to the eurozone debt crisis and the growth rate declined to 6.7 percent.

"We have identified the causes and the Prime Minister, who now holds the Finance portfolio, will take measures to bring back the growth rate to eight percent," Chidambaram said.

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He said no development scheme has been scrapped owing to the slower growth rate in the last fiscal. "Several concrete steps have been taken in various fields from Right to Information to Right to Education. A number of development schemes funded by the Centre are being implemented," Union HRD minister Kapil Sibal said.

"This is because of the strengthening of Indian economy," Sibal said.

"People say our government has not taken any policy decision, there is a policy paralysis, I want to ask them where is the policy paralysis?" he said.

Elaborating on his view that the country's economy would bounce back, Chidambaram said "the basis of my faith is the fundamentals of Indian economy."

"Firstly, Indians are good savers, secondly, business houses are sitting on piles of cash and lastly that doubts raised in the international market will be cleared and funds will flow back," he said.

Sibal, who also holds the telecom portfolio, said that in the telecom sector, foreign firms have assured they have no intention of moving out and rather large investments are being planned by some.

PTI