PM pegs growth of economy at 5 per cent

Tags: Economy
Prime Minister Manmohan Singh today pegged the growth of the Indian economy at five per cent for the current fiscal.

The government's decisions on infrastructure and fiscal reforms have started making impact and India is "re-emerging" as an attractive investment destination, he said.

"Our economy has done well over the past decade. In the nine years since 2004, we averaged a healthy growth rate of 7.9 per cent per annum. There has been no doubt a slow down in the recent past, and we will probably end this year at the same level as last year with 5 per cent growth," Singh said.

Addressing the 12th Pravasi Bharatiya Divas here, the Prime Minister said a number of international as well as domestic factors have contributed to this situation.

"Despite these challenges, our economic fundamentals remain strong. Our savings and investment rates are still over 30 per cent of our GDP and the entrepreneurial spirit in India is very much alive and kicking," he said.

In recent months, Singh said the government has also taken a "very wide range" of decisions to accelerate the implementation of mega infrastructure projects, reform tax administration, improve fiscal management, liberalise foreign direct investments and rationalise the system for allocation and utilisation of natural resources.

In an apparent reference to the logjam in Parliament and opposition to fiscal reforms by some quarters, he said, "With greater political support, we could have legislated deeper reform measures - for example, in the financial and insurance sector.

"However, our decisions are already beginning to make an impact and India is re-emerging as an attractive investment destination. I am confident you will see the evidence clearly in the next few months," the Prime Minister said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • It will take at least 4 more quarters for corporate bottomlines to turn around

    Aggregate numbers from corporate results in the June quarter of 2014-15 are hardly different from the previous six quarters, with no positive surprise

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Dealing with a sin called insensitivity

Rage and the notion of being above the law — ...

Kuruvilla Pandikattu SJ

India’s greatest gift to the world

What we hear most often about India these days is ...

Gautam Gupta

Why must innerwear be our best kept secret?

While women’s outerwear rules the marketing roost in India, unfortunately, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture