PM sees 10% growth soon

PM sees 10% growth soon
The Economic Times, January 9, 2010, Page 1

Says India Moves Slow,But Leaves Behind A Deep Imprint

Our Bureau NEW DELHI

PRIME Minister Manmohan Singh on Friday dangled the carrot of economic growth accelerating to double-digit levels in the next two years before investors and vowed to reduce bottlenecks in setting up projects, a day after steel tycoon LN Mittal lamented about the countrys inability to execute mega investment projects.

Luring non-resident Indians (NRIs) to invest in the country, Mr Singh said the government was optimistic of returning to sustained growth of 9-10 % in a couple of years . Inaugurating the Pravasi Bharatiya Divas, a gathering of the Indian diaspora, he said: I cannot say that we have delivered in full measure on the enormous promise and potential of our country.

The prime ministers forecasts could trigger analysts to upgrade their forecasts. Most independent economists agree that the Indian economy is out of the woods and set to move to a higher growth trajectory in the years ahead.

India, which witnessed an unprecedented growth of more than 9% between 2005 and 2008, desperately needs to set right creaking infrastructure in areas such as power, roads and ports. However, red tape, legal problems with various laws of the states and central government overlapping, and land acquisition from villagers are frustrating industry groups.

But Mr Singh said some had to do with Indias democratic set-up and the diversity of culture , and expressed confidence the country will still move ahead.
I recognise the frustration well-wishers feel when they lament why things dont work faster or why well-formulated plans and policies dont get implemented as well as they should be, Mr Singh said. India may be a slow-moving elephant, but it is equally true that with each step forward , we leave behind a deep imprint , he said and assured that the government would address bottlenecks in infrastructure, farming and healthcare.

Mr Singhs assurance comes after Mr Mittal on Thursday publicly displayed his anger about the crawling pace of projects saying, `` the entire country is to be blamed for the delay in executing the projects .