Indicating that the worst may be over for the Indian economy, Prime Minister Manmohan Singh on Wednesday said economic situation is turning around with inflation coming under control and the GDP growth likely to exceed 6% in the current fiscal.
Speaking on the fourth anniversary celebrations of UPA-II government in New Delhi, Singh said 8% growth rate was possible if the Congress-led coalition is voted to power again next year.
"The economic situation is turning around. Inflation is coming under control. The fiscal deficit is being brought under control. The current account deficit is high, but we will bring it down gradually.
"We are confident that growth in 2013-14 will be better than 2012-13 and could exceed 6%," he said.
Attributing the decline in economic growth--estimated to be 55 in 2012-13-- to global phenomenon, he said the "slowdown is temporary".
A 65 growth in the current year will set the stage for returning to 8% growth in the current Five Year Plan period ending March 31, 2017.
"This will be difficult, but it is not impossible. We have done it before, and if we receive a mandate next year, we will certainly achieve it again," Singh said.
Stating that agricultural growth was critical for rural prosperity, the Prime Minister said the government was targeting 4% growth in the sector and is attempting to increase foodgrain production as well as diversifying agriculture.
"This is the foundation which allows us to introduce Food Security legislation in Parliament," he said, adding that the government had also introduced the Land Acquisition and Rehabilitation Act to replace the old and highly unfair colonial legislation. The new Act will be much fairer to those
whose land is acquired, Singh said.