GDP growth rate can be sustained at 9 pc: PM
New Delhi, Feb 14 (UNI) Prime Minister Manmohan Singh today said India could maintain its high economic growth at 9 per cent even if there was ''turbulence'' in global markets as ''our own effort and potential'' were sufficient to sustain it.
''It is our responsibility today to ensure that uncertainty in the global system does not harm our growth process. A large continental economy like ours can sustain fairly high rates of growth based on the stable and sustained growth of the home market, even if there is turbulence in global markets,'' Dr Singh said.
His comments assume significance in the light of fears of a possible recession in the United States threatening to hit the country's economy.
Addressing a function held at his official residence here to release a book ''Business Standard India 2008,'' he said the government had unleashed the creative energy of the people and that was contributing to the acceleration of economic growth.
The Gross Investment Ratio had now touched an ''all time peak'' of almost 36 per cent of GDP and this represented the underlying dynamism of the economy.
''It
also
represents
a
vote
of
confidence
in
our
policies
and
in
the
prospects
for
India.
I
am
convinced
that
at
current
rates
of
saving
and
investment,
we
will
sustain
close
to
9
per
cent
economic
growth
in
the
medium
term.''
He
said
in
the
years
to
come,
India
and
China
would
be
viewed
as
the
new
growth
engines
of
the
world
economy.
''We
are
not
yet
there,
but
we
will
be.
We
can
certainly
sustain
much
better
domestic
performance
based
on
our
own
effort
and
potential.
Our
macro-economic
policies
are
aimed
at
ensuring
this.''
However,
sustained
development
was
not
like
going
to
a
free
dinner
party.
''We
need
to
pursue
sound
macro-economic
policies
designed
to
raise
savings,
investment
and
productivity.''
The
government's
objective
was
to
ensure
that
the
growth
process
was
inclusive,
in
all
domensions,
and
could
be
sustained
while
holding
inflation
under
check.
''It
has
been
our
endeavour
to
ensure
that
inflation
does
not
get
out
of
control.
It
has
been
our
endeavour
to
ensure
the
long
term
stability
of
the
growth
process,
rather
than
seek
short
term
gains
that
may
have
socially
and
politically
destabilising
consequences.''
UNI
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MSJ
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