GDP to exceed 6% : PM
Indicating that the worst may be over for the Indian economy, Prime Minister Manmohan Singh on Wednesday said economic situation is turning around...
Indicating that the worst may be over for the Indian economy, Prime Minister Manmohan Singh on Wednesday said economic situation is turning around with inflation coming under control and the GDP growth likely to exceed 6% in the current fiscal.A Speaking on the fourth anniversary celebrations of UPA-II government here, Singh said 8 per cent growth rate was possible if the Congress-led coalition is voted to power again next year.
"The economic situation is turning around. Inflation is coming under control. The fiscal deficit is being brought under control. The current account deficit is high, but we will bring it down gradually. We are confident that growth in 2013-14 will be better than 2012-13 and could exceed 6 per cent," he said.
Attributing the decline in economic growth--estimated to be 5 per cent in 2012-13-- to global phenomenon, he said the "slowdown is temporary".A A 6 per cent growth in the current year will set the stage for returning to 8 per cent growth in the current Five Year Plan period ending March 31, 2017. "This will be difficult, but it is not impossible. We have done it before, and if we receive a mandate next year, we will certainly achieve it again," Singh said.
Prime Minister said the government was targeting 4 per cent growth in the agriculture sector and is attempting to increase food grain production. Singh said UPA's track record is better than that of NDA in terms of growth. While the country's average growth rate was 8 per cent in the last nine years, the average growth in NDA government's six year term was only 5.7 per cent. Singh said some of the slowdown in growth was due to external factors, but domestic problems too pulled down GDP.
Referring to allegation in allocation of spectrum and coal blocks, Singh said the government has introduced more transparent mechanism for allocating scarce resources. "We have introduced more transparent systems for the future, i.e., auctions rather than relying on administrative allocations," he said.
Growth widespread,A inclusive in UPA regime
New Delhi (PTI): The UPA report card said that its government has achieved inclusive and widespread economic growth and has been able to double the credit flow to the MSME sector.A "Credit and loan facilities to micro, small and medium enterprises have been more than doubled during the last five years," the UPA said in its 'Report to the People' released by Prime Minister Manmohan Singh and Congress President Sonia Gandhi on the fourth anniversary of UPA-II.
The report highlighted that the economic growth during the UPA regime is "both inclusive and widespread".A Talking about economic security, the report said that consumption has "increased phenomenally" both in urban and rural areas "as fruits of economic growth reached the people".A Due to government's pro-poor policies, consumption in rural areas registered an increase of 3.4 per cent, from mere 0.8 per cent during 1999 to 2004 (when NDA was in power), it said.
During the course of last nine years, Indian economy braved the global financial crisis which pulled down country's economic growth from over 9 per cent to 6.7 per cent in 2008-09. A The growth, however, picked up after the government provided three stimulus packages to the industry.
The growth rate again slipped to decade's low of 5 per cent in 2012-13 as global economy continued to grapple with the aftereffects of the crisis. In the current fiscal, however, the government is hopeful of achieving a growth rate between 6.1-6.7 per cent.