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India can achieve 8-9 per cent growth: PM |
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Winding up the discussion on the Motion of Thanks on the President, Ms Pratibha Patil’s address to the joint sitting of Parliament last week, the Prime Minister, Dr Manmohan Singh, has assured the nation of 8 to 9 per cent growth rate irrespective of how the world economies fared in recessionary times. Dr Singh also indicated that the Government would give a further push to public investments, especially in infrastructure, to propel economic growth.
The growth projections by Singh come within days of caution voiced by the President in her address that the economy could slow down further. GDP had recorded a growth of 6.7 per cent in the last fiscal, mainly due to dip in investments following the global financial crisis.
Dr Singh’s optimism over achieving 8-9 per cent growth comes on the back of the strong savings rate of 35 per cent – the second largest savings rate in the world. The Prime Minister said that in 2009-10 the country will maintain at least 7 per cent growth rate.
The Prime Minister also sought to allay fears that stimulus packages announced earlier and measures that will follow in the ensuing months would fuel inflation. The Prime Minister reckoned that the best way to deal with international slowdown was to push up public expenditure, particularly on infrastructure projects. “That (increase in public expenditure) would not lead to inflation. That would only add to our development growth potential,” Dr Singh added.
Asserting that the mandate in the last general elections was for inclusive growth, he said although the fiscal deficit in the recent past has shot up, there was enough scope for increasing public expenditure especially on infrastructure projects.
He also said that his government was deeply committed to the agenda listed in the President’s address, adding that flagship programmes will be further strengthened and public delivery system made more transparent. “For fruits of development to be equally shared, we need to invest in education, health and environment protection. That requires resources and money does not grow on trees,” said the PM, crediting ample resource for development projects to the 8.9 per cent growth in the past five years which kept revenue bases enriched.
FM equally hopeful of turnaround: While addressing heads of PSU banks, Finance Minister Pranab Mukherjee also expressed hope that the economy, spurred by fiscal and monetary stimulus packages, would turn around soon.
He said the last quarter GDP growth figure of 5.8 per cent and the annual growth of around 6.7 per cent for 2008-09 is a pointer towards this direction. Despite contraction in manufacturing output in the fourth quarter last fiscal, economic growth figures were well in the range projected by RBI — 6.5-7 per cent — and better than what many had forecast.
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