"We are going through a period of stress but there is a ground for optimism... We hope things will become better in the second half of the current fiscal (2013-14). We hope to achieve a growth rate of 5 per cent," he told reporters.
Chidambaram based his optimism on several factors such as improvement in Current Account Deficit, output of the services sector and recovery of exports.
The Reserve Bank data showed that decline in gold imports and turnaround in exports helped narrow India's CAD sharply to USD 5.2 billion, or 1.2 per cent of GDP, in the July-September quarter of the current fiscal.
"We are satisfied with 4.8 per cent growth in Q2 versus 4.4 per cent in Q1 (April-June). We are looking forward to better performance in Q3 and Q4," Chidambaram said.
Chidambaram said that with the recent improvement in some important sectors like manufacturing, better performance of exports as well as certain steps taken by the government the economy can be expected to show further improvement.
He also expressed the confidence that government will be able to achieve the disinvestment target of Rs 40,000 crore and contain the fiscal deficit within 4.8 per cent of the GDP.
"The fiscal deficit at the end of any month does not give a true picture as expenditure is front-loaded and revenues are usually back-loaded. We will contain fiscal deficit at 4.8 per cent," he said.
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