Committed to 9-10 per cent economic growth, says PM

New Delhi, June 30: Amid fears of slowdown, Prime Minister Manmohan Singh on Wednesday, Jun 29 said it was possible to raise economic growth rate to 9-10 per cent annually on the back of improved physical and social infrastructure.

"We are committed to a growth rate of 9 to 10 per cent per annum. Our savings rate is about 34 to 35 per cent of our GDP...with an investment rate of 36 to 37 per cent (and) capital output ratio of 4:1, we can manage to have a growth rate of 9 per cent," he said while interacting with a group of editors here.

The Prime Minister, however, said raising economic growth rate to double digits would require strong commitment to improving infrastructure and upgrading education and healthcare facilities.

His assurance comes in the wake of the Reserve Bank lowering the economic growth projection to 8 per cent for the current fiscal as against 8.5 per cent achieved in 2010-11.

Referring to the the economic agenda for the next eight to nine months, Singh said, "First, it is to sustain momentum of growth that we have attained. Second is to ensure that infrastructure does well, procurement system must be made more transparent."

He also sought cooperation from the Opposition in passing the reform-oriented legislations like Insurance Bill that seeks to raise foreign direct investment (FDI) limit to 49 per cent from 26 per cent now.

"We helped BJP to pass first Insurance Bill...we want to raise FDI to 49 per cent. We hope, we can still persuade the Opposition to help in this", he said.

PTI