Committed to 9-10 per cent economic growth, says PM

New Delhi (PTI) - Amid fears of slowdown,
Indian Prime Minister Manmohan Singh Wednesday said it was
possible to raise economic growth rate to 9-10 per cent
annually on the back of improved physical and social
infrastructure.
"We are committed to a growth rate of 9 to 10 per cent
per annum. Our savings rate is about 34 to 35 per cent of our
GDP...with an investment rate of 36 to 37 per cent (and)
capital output ratio of 4:1, we can manage to have a growth
rate of 9 per cent," he said while interacting with a group of
editors here.
The Prime Minister, however, said raising economic
growth rate to double digits would require strong commitment
to improving infrastructure and upgrading education and
healthcare facilities.
His assurance comes in the wake of the Reserve Bank
lowering the economic growth projection to 8 per cent for the
current fiscal as against 8.5 per cent achieved in 2010-11.
Referring to the the economic agenda for the next
eight to nine months, Singh said, "First, it is to sustain
momentum of growth that we have attained. Second is to ensure
that infrastructure does well, procurement system must be made
more transparent."
Expressing concern on the international front, Singh
said, "I think the situation is not that positive. The
international global recovery is fragile. Even the US growth
rate is faltering.
"In Europe, it is the sovereign debt crisis, the
problem of the Greek crisis, and whether the Euro-zone will
survive or not. If it will not survive, it will be a major
institutional collapse," he said.
He further said that what was happening in the Middle-
East was of direct concern to India. Apart from the fact that
six million Indians work there, "nearly 70 per cent of our oil
supplies come from the countries of the Gulf and North Africa.
What turn these events will take nobody knows.
"So, (we) have to swim against this adverse tide and
therefore India requires all the energy and all the
cohesiveness of our polity to swim against these tides and
come out victorious," he said.
Citing the example of handling 2008 financial crisis,
Singh said that India managed to retain a growth rate of 7 per
cent followed by 8-8.5 per cent. "We must have the vision, the
ability and the determination to prosper even when the world
environment is hostile," he added.
On the domestic front, he said, the country should
move ahead with important legislation like the Goods and
Services Tax and remove barriers to inter-state commerce.
On the contentious issue of allowing foreign
investment in multi-brand retail, the Prime Minister said,
"There is a big debate on this. Small traders have a fear but
there is the other side also."
The industry ministry had earlier come out with a
discussion paper making a case for opening multi-brand retail
sector to foreign investment. The government has already
allowed 100 per cent FDI in wholesale business.

He also sought cooperation from the Opposition in
passing the reform-oriented legislations like Insurance Bill
that seeks to raise foreign direct investment (FDI) limit to
49 per cent from 26 per cent now.
"We helped Bharatiya Janata Party (BJP) to pass first
Insurance Bill...we want to raise FDI to 49 per cent. We hope,
we can still persuade the Opposition to help in this", he
said.