9% growth this year despite slow-down in global economy: PM

9% growth this year despite slow-down in global economy: PM

Feb 15, 2008

The Prime Minister has said that the country is likely to touch nine
per cent growth this year, despite the possibility of downturn in
global economy.

Addressing the 80th FICCI Annual General Meeting in New Delhi, Dr.
Manmohan Singh said a major part of India's growth is driven by
domestic factor particulary improved investment and consumption
demand.

He however added that the country cannot remain completely insulated
from chilly global winds that may blow in our direction. Expressing
satisfaction over the high growth rate which is broad based, socially
inclusive and more sustainable, Dr. Singh said it is a win win
relationship between growth and empowerment. Blaming the non-Congress
governments at the centre for low growth rate during the 9th five year
plan, he said they took no attempt to make the growth more broadbased
and inclusive.

He also asked the industry to look sympathetically towards
government's endeavour on inflation control in the interest of the
poor.
Outlining the four key aspects of government's policy frame work
namely agriculture and rural development, infrastructure, education
and health care, Prime Minister said it will help to step up the
growth process in an inclusive manner.

He said the health of agriculture is vital for sustaining the economic
performance as a significant proportion of our population depends on
it and the sector also acts as a social safety net.

He said, though the share of agriculture in GDP has been declining but
one can not have a situation where 80 per cent of this sector is
outside the formal financial system and suffers from excessive
indebtedness.

Dr. Singh said, the government is trying to resolve this problem.
Speaking on the occasion, the FICCI President Mr. Habil Khorakiwala
demanded sops from the governments including lowering of interest rate
to make the manufacturing sector more competative. He said there must
be structural solutions to the health and education sectors as reforms
process has not touched them adequately.

He said the industries will be establishing around three hundred
technical institutes in private-public partnership and called for
massive transformation of vocational education to meet the demand of
shortage of skills.