When it comes to the economy, India is still shining believes Finance Minister Jaswant Singh.

India's fiscal deficit is likely to be lower than 4.46 per cent of GDP that was estimated in the interim Budget even as the gross domestic product growth for the current year would be in excess of 8.1 per cent, said Singh.

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"I am absolutely confident that the fiscal deficit will be lower than the estimated 4.46 per cent of GDP even as the GDP will be higher," he told the media in Mumbai.

India's economy posted a scorching double-digit growth rate of 10.4 per cent in its gross domestic product between October and December 2003.

This compares to 8.4 per cent in the second quarter and 5.7 per cent during the first quarter.

Overall, estimates suggest that the annual GDP growth rate for fiscal 2003-04 is likely to be at 8.1 per cent.

Singh's confident remarks now suggest that the fourth quarter results will ensure that the GDP growth goes past the estimates.

Revenue collections are also likely to be higher by 8 per cent compared to the Budget estimates.

However, the growing internal debt has been an area of worry for most economists.

Singh acknowledged that the internal debt is expanding but said that it is growing at a much lower rate than before. He, however, declined to give any specific figures.

The rapidly appreciating rupee against the dollar too found a mention in Singh's remarks.

This year alone the rupee has appreciated two per cent versus the dollar.

A perception among many economists is that the government has allowed the rupee to appreciate in order to keep inflation in check.

Singh dismissed the view and said that the real exchange rate continues to be the same and that the exchange rate is being managed effectively by the Reserve Bank of India.