Amingaon/Guwahati: The Indian economy will return to growth rates of 8-9% as the global economy begins to recover from September, Prime Minister Manmohan Singh said on Sunday.
Asia’s third largest economy is expected to have grown slightly below 7% in the fiscal year ended 31 March and some economists have said that growth could be slower in the current financial year.
This compares with growth of 9% or more in the last three years, before the financial crisis slashed exports and moderated domestic demand.
Optimistic: Prime Minister Manmohan Singh (left) with Assam chief minister Tarun Gogoi at a news conference in Amingaon on Sunday. Utpal Baruah / Reuters
“The world economy is expected to partially recover by September and if that happens, we expect to go back to a growth rate of 8-9%,” Singh told reporters at a news conference.
The economic growth is expected to be in the range of 6.5-7% in the current financial year, Singh said.
Responding to questions on the global meltdown and its impact on India, the Prime Minister said the world is faced with a “grave” economic crisis that arose because of mishandling of the financial system by the major developed countries.
On the ongoing bitter war of words with the Bharatiya Janata Party (BJP) prime ministerial candidate L.K. Advani, Singh said he does not want to “prolong this match”.
“Whatever I have to say, I have said it already. I don’t want to prolong this match and dialogue,” he said when asked to comment on the recent verbal duel with Advani.
Facing the constant jibe of being a “weak” prime minister, Singh had hit back at Advani last Monday saying the “iron man” had quickly melted during the Kandahar hijack crisis and was weeping in a corner when the Babri mosque was demolished.
(‘PTI’ contributed to this story.)