New Delhi, Sep 23 (IANS): Walking on the path of fiscal prudence, India can attain 8 percent Gross Domestic Product (GDP) growth rate in the next two-three years, former finance minister P.Chidambaram said here Tuesday.

"I remain very confident, despite change in government, that if we remain firmly on the path we will get back to 8 percent growth in about 2-3 years," he said here at an event.

"Financial sector reform is also very much required for achieving 8 percent growth," Chidambaram added.

He said if the government maintained its fiscal prudence and promoted savings and investments, it would be possible to achieve 8 percent GDP growth.

The Indian economy grew by 4.9 percent in 2013-14 fiscal. But in the April-June quarter of the current fiscal 2014-15, the growth picked up to 5.7 percent.

Chidambaram also added that 8 percent growth would help create employment for 10 million people.

He said it is possible to finance 8 percent growth by domestic savings and foreign direct investment.

The former minister said the best way to control inflation is to contain fiscal deficit.

The present Bharatiya Janata Party-led government targets to bring down fiscal deficit to 4.1 percent in 2014-15 from 4.5 percent in 2013-14.

About the Narendra Modi government's decision to do away with the Planning Commission, Chidambaram said it has outlived its utility.

"I believe that the right decision was to end the Planning Commission and what should be in place is only a much smaller, not more than 100 people in the new body," he said.

And only those people should be inducted into such a body who can do prospective planning, and lay out the future roadmap and finally leave it to the ministry, he added.