Singapore: Finance minister P Chidambaram estimates India's economic growth to be in the range of 9 per cent for the fiscal year ending 31 March 2008, while saying that turbulence in global  financial markets is making it increasingly harder to sustain such growth rates.

Chidambaram commented that problems arising out of the credit markets would affect India as well, while delivering a lecture in Singapore.

A few days ago, ICICI Bank had reported its exposure to risks from the US sub prime mortgage crisis. He said that as the crisis was handed down from one market to another, and the consequences are now being felt in India, as well. 

Chidambaram said that the recent Union Budget tabled by the government in February 2008 had taken steps to stimulate demand in the Indian economy, though measures such as a significant reduction in personal income taxes, expanding and deepening the corporate debt market, and large outlays of public expenditure on education, health, roads, irrigation. 

He said that the fiscal deficit for 2008-09 would be below 3 per cent, lower than the 3.1 per cent projected in 2007 – 08. He said this was what gave him the "fiscal space and comfort" to roll out the assistance package to farmers.