PM confident of achieving 9% growth
Despite being hit by global slowdown, India`s GDP growth rate can "bounce back" to 9% in the next 3 yrs.
Moscow: 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