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.

EDITORIAL OF THE DAY

  • The talent to make things grow big must be rewarded without a ceiling

    Executive pay has always been a hotly debated topic, mainly because it involves a lot of money.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Roopen Roy

How leaders groom future leaders

As writer Tom Peters said, “Leaders do not create followers, ...

Rajgopal Nidamboor

Pluralistic essence of our being

Our new understanding of the mind through the rapidly expanding ...

Dharmendra Khandal

Have you spotted those wasps, yet?

Wasps are insects that ride on the monsoon winds. I ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture