India's union Finance minister Pranab Mukherjee has said that the government is aiming to control the fiscal deficit to 2 per cent of the national Gross Domestic Product (GDP).

He said that the target of 2 per cent of the GDP is achievable and combined with a moderate rate of inflation; the Indian economy could be put back to the high growth trajectory.

"Though it is a matter of great concern that there is a slowdown in the GDP growth besides having higher current account and fiscal deficit, there is no need to press the panic button," he said while speaking to the chairpersons of Debt Recovery Appellate Tribunals (DRAT).

Mr. Mukherjee has dismissed suggestions that the economic situation in the country can be compared to that in 1991. He pointed out that the foreign currency reserve of the country today is much stronger than in 1990. He said that such comparisons are incorrect while making a presentation to the Congress Working Committee on the economic situation.

He said that strong basic fundamentals and high rate of domestic savings and investment as well as a reversal in the monetary policy by the central bank would revive the economy and put it back on the path of high growth rate while maintaining a moderate rate of inflation and a reduced deficit.