Manmohan says 8-9% GDP growth achievable

Manmohan says 8-9% GDP growth achievable
The Hindu Business Line, June 10, 2009, Page 1

Our Bureau, New Delhi

The Prime Minister, Dr Manmohan Singh, has said the Indian economy could achieve growth rate of 8-9 per cent even if the world economy did not do well.

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, Dr Singh also indicated that the Government would give a further push to public investments, especially in infrastructure, to propel economic growth.

The comments come despite his observation that the country’s fiscal system was under strain.

“The ambition that our Government has is that notwithstanding developments in the global economy, our country must have the resilience to so manage its affairs that it grows at the annual rate of 8-9 per cent. That will be the direction in which we will be moving,” Dr Singh told the Lok Sabha here.

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.

“In the short run, we cannot do better but this is not good enough,” he said, adding that hence the Government had ambition of achieving 8-9 per cent growth rates.

Even as the fiscal system was under strain, Dr Singh noted that in the short run the country had the manoeuvrability to spend more resources on UPA’s flagship programmes. “I sincerely believe that the Finance Minister, when he presents his budget, will unfold the Government’s strategy in this regard,” he added.

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.