Prime Minister Manmohan Singh on Saturday said his government will work its way to restore the momentum of growth in the wake of the economic slowdown and sought cooperation from all political parties, whether it is Trinamool or others.
Asserting there is no stagflation, Singh said he was still confident that the growth rate of the economy will improve to about 7% per annum. The economic growth has fallen to 5.3%, a nine-year-low.
The Prime Minister also said that any obstacles or policy impediments that would come in the way of foreign investment -- both portfolio and direct -- would be addressed "effectively and credibly."
Fresh from attending the Summit of Group of 20 developed and developing countries in Mexico, the Prime Minister said India must plan its economy in a manner that it cannot expect outside help on a scale which can see it through its difficulties.
"We have to raise our economy through our own good steps," he told reporters accompanying him on his return from Mexico and Brazil after attending two international summits.
The Prime Minister did not spell out specific details of what the government planned to do to tackle the slowdown but said problems of fiscal management and balance of payment on current account deficit will be tackled "effectively and credibly."
".... we have to work our way to restore the momentum of growth that India needs and which the people of India want the Government of India to work for...," Singh said.
"We have to work harder than ever before in restoring fiscal balance. We need to work systematically to ensure that the Balance of Payment (BoP) problem is managed properly and the climate for foreign investment, both direct and portfolio is also favourably motivated."
Stating that the events of the last couple of days convinced him more than ever before that there are no international solutions to the problems of a country of India's size, the prime minister urged all political parties to work with the government to restore the momentum of growth that this country is capable of and which the country needs.
"I am still confident that when it comes to dealing with the basic fundamental problems of our country all political parties will join hands, whether it is Trinamool Congress, or other parties. I expect each one of them to play their role in moving this country back to the high growth path that we are capable of."
"There is no stagflation. There is a slowing down," he added.
The Prime Minister also said that a lot of things which are not going right have their origins outside India.