Economy to get back to 9 pc growth: PM

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SME Times News Bureau | 02 Apr, 2010
Prime Minister Manmohan Singh on Thursday said that the economy can get back to 9 percent growth path soon, adding that the country's highly entrepreneurial private sector and rich human resources can play a crucial role to boost the recovery process.

"I believe we can get back to 9 percent growth path by the end of the Eleventh Plan and do even better thereafter," Singh said at the Platinum Jubilee celebrations of the RBI in Mumbai.

He added that the government is committed to reduce the fiscal deficit from 6.8 percent of GDP in 2009-10 to 5.5 percent in 2010-11 with a further reduction in the next two years reaching 4.1 percent in 2012-13.

"We have a highly entrepreneurial private sector which has demonstrated that it can compete in global markets, not just in software but in areas of traditional manufacturing also. We have a critical mass of human resources with good quality higher education, which definitely places us at an advantage in today’s world", Singh said.

India is geographically located in a continent which is gaining in economic importance and looks like being a major driver of the world economy in the years that lie ahead, he added.

He said,"We must build on these strengths and return as quickly as possible to a high growth path."

The Prime Minister set a three-point agenda for the Reserve Bank of India (RBI) to get the Indian economy back on a high growth path and ensure inclusive growth.

"The RBI needs to keep inflation under check, ensure stability of the financial sector and meet the financial intermediation needs of a rapidly growing economy," he said.

Cautioning against drawing wrong conclusions from the global financial crisis, Singh said the financial sectors needed to develop further through required liberalism and innovative instruments in order to support higher rates of economic growth.