PM finds 8% GDP target difficult but achievable
20 Oct 2012 1:21 AM GMT
Citing uncertainty in global economic scenario, Prime Minister Manmohan Singh on Friday said the government's endeavour to achieve 8 per cent annual growth will not be an easy task, even though it is not unattainable.
At the Combined Commanders' Conference in New Delhi, Singh said India needs an aggregate growth rate of 8 per cent per annum to create new job opportunities for more than 10 million persons who are going to enter the labour force each year.
'This is not going to be an easy task, given the international economic environment. However, it is not unattainable if we make determined efforts to increase our investment rate to 37-38 per cent as was the case three years ago,' Singh said.
While India has confronted persistent challenges on the external front, Singh said the global economic recovery has failed to materialise.
'The continuing uncertainty and weaknesses in the Eurozone economies have hobbled the pace of growth, including in Asian economies. Inevitably, India too has had to deal with the fallout of slowing growth, falling exports and expanding deficits,' the Prime Minister said.
India's economic growth slowed to a 5.5 per cent in the first quarter of 2012-13 from 8 per cent in the year-ago period. While exports are on decline since May [till August], the fiscal deficit has touched 66 per cent of the budgeted Rs 4.12 lakh crore in first five months of the financial year.
At the Combined Commanders' Conference in New Delhi, Singh said India needs an aggregate growth rate of 8 per cent per annum to create new job opportunities for more than 10 million persons who are going to enter the labour force each year.
'This is not going to be an easy task, given the international economic environment. However, it is not unattainable if we make determined efforts to increase our investment rate to 37-38 per cent as was the case three years ago,' Singh said.
While India has confronted persistent challenges on the external front, Singh said the global economic recovery has failed to materialise.
'The continuing uncertainty and weaknesses in the Eurozone economies have hobbled the pace of growth, including in Asian economies. Inevitably, India too has had to deal with the fallout of slowing growth, falling exports and expanding deficits,' the Prime Minister said.
India's economic growth slowed to a 5.5 per cent in the first quarter of 2012-13 from 8 per cent in the year-ago period. While exports are on decline since May [till August], the fiscal deficit has touched 66 per cent of the budgeted Rs 4.12 lakh crore in first five months of the financial year.
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