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9 % growth in two years, says PM

world Updated: Nov 23, 2009 23:33 IST
Varghese K. George

Prime Minister Manmohan Singh asked the American business community for “innovative ideas” to finance public private partnership in infrastructure development in India. Addressing the US-India Business Council in US capital, the PM said the Indian economy will “resume faster growth” after the slowdown, compared to other economies.

“There are a number of reasons why I believe the Indian economy will resume rapid growth despite the fact that slower growth in industrialized countries will limit our export possibilities. Our domestic savings rate has increased very substantially and supported an investment rate of 39 percent in 2007-08…we have ample human resources in terms of labour skills, scientific talent and management capability,” Singh told business leaders in the US, calling them to invest in India.

In the five years before the slowdown began in 2008, India grew at average 9 per cent annually. In 2008-9 it was 6.7 per cent and the current year Indian economy is expected to grow at 6.5 percent. “We expect to get back to a growth of around 9 percent within two years,” the prime minister said.

Singh told the business community that the centre and state governments in India have taken many measures to encourage PPP in development. He said inadequate hard infrastructure is a weakness of India and the country is looking for “investments in energy, transport and urban infrastructure to be able to support a high rate of growth.”

The Prime Minister said India’s reforms will continue and bringing deficit under control will be a priority besides tax reforms and reforms in education and skill development.

Singh thanked the American business for playing a “vital role” in transforming the Indo-US relationship into a strategic partnership and pointed out that with the completion of the nuclear deal, large business opportunities for American companies will open up in India.