India can achieve 8-9 per cent economic growth: PM

New Delhi, June 9 (PTI) Indian Prime Minister Manmohan
Singh Tuesday said the country's economy is even now capable
of growing by 8-9 per cent, the same rate as it did before the
global financial meltdown set in.

"Since our savings rate is as high as 35 per cent...if
all work together, we can achieve a growth rate of 8 to 9 per
cent, even if the world economy does not improve," he said
while winding up the debate on Motion of Thanks to the
President's address to joint sitting of Parliament.

The global crisis, Singh said, had affected India's
economic growth that slipped from 9 per cent to around 7 per
cent in the previous fiscal.

The fall in growth is mainly due to dip in investments,
which are key to economic expansion.

The Prime Minister further said that during the current
fiscal the country would grow by seven per cent.

"This year, we will maintain at least seven per cent
growth rate. In the short run we cannot do better, but this is
also good enough," he said.

The Reserve Bank in its monetary policy for the current
fiscal projected the economy to grow by 6 per cent, lower than
the 6.7 per cent achieved during 2008-09.

Singh also said that efforts would be made for increased
investment in the infrastructure sector to boost economic
growth.

"There is considerable scope for increasing public
expenditure, particularly on infrastructure projects," he
said.

According to official estimates, India requires over USD
500 billion to upgrade its infrastructure. PTI TEAM
PMR
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