Pegging India’s economic growth at 5% for 2013-14, Prime Minister Manmohan Singh on Wednesday said the UPA government’s reforms on infrastructure sector and fiscal front are helping India re-emerge as an attractive destination for investments.
The country was heading towards “better times” and there is no reason to “despair about its present or worry about the future,” Singh said, addressing the 12th edition of the Pravasi Bharatiya Divas, the annual gathering of Indian diaspora.
“Our economy has done well over the past decade. In the nine years since 2004, we averaged a healthy growth rate of 7.9% per annum. There has been no doubt a slowdown in the recent past, and we will probably end this year at the same level as last year with 5% growth,” said Singh.
In recent months, the prime minister said, the government has also taken a number of decisions to accelerate the implementation of mega infrastructure projects, reform tax administration, improve fiscal management, liberalise FDI norms and rationalise the system for allocation and utilisation of natural resources.
He also asserted that despite a slew of factors, economic fundamentals remain strong. “Despite these challenges, our economic fundamentals remain strong. Our savings and investment rates are still over 30% of our GDP and the entrepreneurial spirit in India is very much alive and kicking.”
Referring to the to the logjam in Parliament and opposition to fiscal reforms by some quarters, he said, “With greater political support, we could have legislated deeper reform measures.”
“However, our decisions are already beginning to make an impact and India is re-emerging as an attractive investment destination. I am confident you will see the evidence clearly in the next few months.”