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Govt determined to take tough decisions to revive economy: Manmohan

Concerned over the dip in economic growth, Prime Minister Manmohan Singh says the public in the country is impatient for a return to high growth and faster jobs creation.

BT Online Bureau   Los Cabos (Mexico)     Last Updated: June 19, 2012  | 09:49 IST

Assuring investor sentiment on the economy, Prime Minister Manmohan Singh on Monday said his government is determined to take "tough" decisions to revive the economy and put it back on high growth path of 8-9 per cent per annum again.

Expressing confidence, he said government is determined to take decisions on controlling subsidies.

Concerned over the dip in India's economic growth, Singh said the public in the country is "impatient" for a return to high growth and faster jobs creation.

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He also said that steps were being taken to revive investor sentiment in the country .

The Prime Minister addressed some critical issues relating to the slowdown in India's economy in his address during the Plenary Session of the seventh Summit of the Group of 20 developed and developing countries.

"Like other countries, we too allowed the fiscal deficit to expand after 2008 to impart a stimulus. We are now focussing on reversing the expansion. This will require tough decisions, including on controlling subsidies, which we are determined to take," Singh told the galaxy of world leaders including US President Barack Obama.

India is targeting a fiscal deficit of 5.1 per cent of GDP for this fiscal year. But a higher subsidy bill and lower tax revenue have resulted in its fiscal projections for 2011-12 go awry. The fiscal deficit was 5.8 per cent in 2011-12, wider than the initial target of 4.6 per cent.

The country's growth slowed to a nine-year low of 5.3 per cent in the fourth quarter of 2011-12.

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Referring to the slowdown in India like other emerging economies, the prime minister acknowledged that internal constraints have also affected performance and that the government was working to correct them.

"The global downturn and especially the impact on capital flows have played their part. Internal constraints have also affected performance and we are working to correct them," he added.

"We are determined to create an environment that would boost investor sentiment and promote an atmosphere conducive to enterprise and creativity," the prime minister told the G20 Summit.

"Our policies will be transparent, stable and designed to provide a level playing field to both domestic and foreign investors," he said, using the forum to send the message that his government now meant business.

According to him, even as India»s growth at 6.9 per cent appeared good to the outside world, the citizens desired more. He said this desire will be met with steps like infrastructure investment and improving investor sentiment.

"Our growth rate in 2011-12 declined to 6.9 per cent from the level of 8.4 per cent in the previous year. This may look like a reasonable figure given the growth rates being experienced in the rest of the world," the prime minister told the plenary session of the G20 Summit.

With IANS and PTI inputs

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