India PM optimistic on the country's growth trajectory

Jaipur (Rajasthan, India), Jan 9 (PTI) Noting that the country is passing through "difficult times", Prime Minister Manmohan Singh said India's growth rate in the current fiscal ending March 31, 2012 will be 7 per cent but was optimistic that the economy will return to a higher trajectory of 9-10 per cent in the medium term backed by strong fundamentals. "Our country is going through difficult times .... We are up to the task of meeting these challenges we face as a nation", he said Sunday while addressing the Pravasi Bharatiya Divas, the annual conclave of the Indian diaspora, being held in this northwest Indian city which is the capital of the state of Rajasthan and is being attended by over 1,900 overseas Indians from over 60 countries. Despite an adverse international environment, Singh said, "the Indian economy is expected to grow by about 7 per cent this financial year ending March 31." The country recorded a Gross Domestic Product (GDP) growth rate of 8.5 per cent in 2010-11 and was initially estimated to grow by 9 per cent in the current fiscal. The growth rate projection, however, was scaled down gradually by the country's central bank RBI as well as the Finance Ministry. The Prime Minister, however, exuded confidence that growth rate in the coming years would go up to 9-10 per cent as the "economic fundamentals are strong and ...consittutional processes are robust". "...we hope to bring back the rhythm of our growth process to sustain an annual growth rate of 9-10 per cent in the medium-term. Our domestic savings rate which currently stands at 33-35 per cent of our GDP will greatly facilitate the realisation of our growth objectives", he said. Singh also said that efforts to combat inflation have started yielding results and there has been an improvement in the situation. Fulfilling a long-standing demand, Singh said a pension and life insurance scheme for overseas Indian workers is being introduced. This will benefit over 5.0 million Indian workers employed oversear, especially those in the Gulf. The scheme was recently cleared by the Indian Cabinet. Addressing the conclave, India's Finance Minister Pranab Mukherjee asked the non-resident Indians (NRIs) to invest more in the country saying that though there has been large ticket investments by the diaspora, it was still much less than the potential. Citing the example of China, he said India too needs to fully tap the investment potential of NRIs and their entrepreneurial skills and promote inclusive growth. Overseas Indians, he said, should increase their contribution in social and economic areas like education, healthcare, and skill development and supplement the efforts of the government to promote inclusive growth. Ms Kamla Persad-Bissessar, Indian-origin Prime Minister of Trinidad and Tobago and the chief guest at this year's meet, in her speech expressed readiness to host the Pravasi Bhartiya Divas in her country, saying it would help in sharing "new understandings" and developing appreciation for the diaspora. Bissessar said small countries like hers would benefit immensely from such events. "I wish to sincerely urge that consideration be given to holding of Pravasi Bhartiya meet in the Caribbean and for which I pledge the support of my country," she said in her address. In doing so, Bissessar said, "Countries can share new understandings, and develop appreciation for diaspora in their adopted homelands. PTI