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8-9% growth difficult but not impossible: PM
Press Trust of India, Saturday July 11, 2009, On Board PM's Aircraft

Notwithstanding the uncertainty surrounding the global economic recovery, Prime Minister Manmohan Singh on Saturday said India should be able to sustain a growth rate of 8 to 9 per cent GDP growth.

He said he was confident that India would come out of this crisis stronger but the road ahead was also going to be difficult to traverse.

"It is not going to be easy but I am convinced that India's savings rate, which is as high as 35 per cent with a normal capital output ratio of 4:1, we should be able to sustain, with a little bit of effort, a growth rate of about 8 to 9 per cent notwithstanding the difficulties on the international front," Sing told reporters accompanying him on his way back home from a four-day visit to Italy.

Against the backdrop of the world attempting a recovery from the recession caused by the financial crisis in the heart of the developed world, he said he had discussions with the leaders of G8 and G5, Egypt and African countries.

"After our discussions, it is my sense that while there are some signs of recovery, the world economy is still a long way from recovering the earlier growth momentum and there must be questions whether that will soon be possible for the global economy," he said.

The Prime Minister said he was returning home convinced that India must continue to strengthen steps at home to regain the 8 to 10 per cent growth path.
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Tags: G5, G8, Growth, India, Manmohan Singh
Comments
Posted by Karavadi Raghava Rao on Jul 11, 2009
Unless the situation in US improves no major change will come in our economic front. These figures and statistics can be manipulated. Take for example inflation and price index. The prices of all essential commodities are going up never coming down. But the government figures have shown reverse rate of inflation. Only with regard to vegetables there will be ups and downs. As long as Black and Money rules the roost no major change will come in the economic field.
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