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E-mail ID will not be published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

  • Signalling good times, current account deficit is likely to grow from here on

    The current account deficit (CAD) numbers for April-June quarter declined sharply to 1.7 per cent of GDP.

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

Arun Nigavekar

Disruptive innovation in education

The past two weeks had a fair share of interesting ...

Rajgopal Nidamboor

Regain the spirit of focused power

For aeons, the human race has been experimenting with a ...

Gautam Gupta

Manufacturing must keep workers’ welfare in mind

It may be early days yet, but the labour reforms ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture