Indian economy to grow 8.5% this fiscal, says PM

NEW DELHI: Indian economy is expected to record 8.5 percent growth during the current fiscal, said Indian Prime Minister Manmohan Singh on Saturday, adding that the high growth rate was vital to fund ambitious social development initiatives.

“Despite the uncertain global economic scenario, I am happy that our economic recovery is progressing well,” Singh told an annual gathering of about 1,500 non-resident Indians (NRIs) and persons of Indian origin (PIOs) in New Delhi who converged from across the world for the three-day event.

“In the last two quarters, our growth rate has been 8.9 percent and we expect that for the entire year, it will be around 8.5 percent,” he said, adding, “We expect that from the next year onwards we will be able to grow at a rate between 9 and 10 percent.” On Friday, the consultancy group PriceWaterhouseCoopers forecast that the Indian economy will register the second fastest growth between now and 2050 and emerge as the second biggest economy in the world by the middle of this century. “India has the potential to be one of the three great economies of the 21st century, together with China and the US,” the report said.

Addressing the 9th Pravasi Bharatiya Divas, Singh urged the Indian diaspora to have “deeper engagement” in the country’s development process. He invited NRIs and PIOs to invest in the Northeastern states of the country and contribute in accelerating the pace of development there.

“I represent Assam (one of the Northeastern states) in Parliament and I know what bountless potential the region has to contribute to nation building given the right opportunities. Providing gainful employment opportunities for the youth is a real challenge. I encourage the diaspora to join hands with local and national efforts to accelerate the pace of development of this region,” the Indian Prime Minister said.

The Ministry of Overseas Indian Affairs, which organizes the Pravasi Bhartiya Divas, has partnered this time with eight Northeastern states and Ministry of Development of North Eastern Region to project the region as an attractive destination for investment.

Singh remained silent on inflation, but Indian Finance Minister Pranab Mukherjee — speaking at the same event — acknowledged the need to control it. “We have to take all measures to keep inflation at a moderate level,” Mukherjee said.

Earlier, Overseas Indian Affairs Minister Vayalar Ravi invited the 25-million strong diaspora to be part of the “India growth story” and take the country forward in diverse sectors.

On his part, India’s Human Resource Development Minister Kapil Sibal said the education sector needs about $150 billion of investment in the next 10 years and sought active cooperation of the diaspora in building quality education infrastructure in the country.

“India is a land of opportunity today. We cannot sustain the economic growth rate unless we have quality educational infrastructure and empower our youths. We invite you to invest in the educational sector where we need massive investment,” Sibal said.

The Indian Prime Minister also asked the Indian diaspora to share their expertise and experience in improving educational infrastructure in India. “We hope to use the wisdom, experience and resources of the global Indian community to develop a world class education system, particularly in higher education,” he said.