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PM confident of achieving 9 per cent growth

india Updated: Dec 04, 2009 20:30 IST

Despite being hit by the global slowdown, India's GDP growth rate can "bounce back" to nine per cent in the next three years due to robust savings and investment rates in country's economy, Prime Minister Manmohan Singh has said.

"Before the global slow down our economy in the previous four years was increasing at an annual rate of nine per cent per annum. Last year, because of the global slowdown the growth rate declined to about 6.7 per cent," Singh said.

Appearing optimistic about the state of the Indian economy, which has been affected by the global slowdown, the Prime Minister said, "This year we expect the growth rate to be 6.5 to seven per cent."

Singh exuded confidence that in two to three years' time, the Indian economy can bounce back to the growth rate of about nine per cent per annum.

"I say this for many reasons. Our savings rate is about 35 per cent of our GDP. Our investment rate is about 37 per cent of GDP," Singh told a Russian media in an interview ahead of his three-day official visit here.

With these savings rate and investment rates, we can sustain a growth rate of nine per cent without difficulty.

"With an investment of 37 per cent and the capital output ratio of four is to one we can easily attain the targeted growth rate of nine per cent per annum, which I expect we will do in the next two to three years," the Prime Minister said.