The Hindu Business Line : Manmohan assures steps to sustain growth process

THE PRIME MINISTER, Dr Manmohan Singh, with the Editor-in-Chief, The Economist, Mr John Micklethwait, at a roundtable in the Capital on Tuesday. — Ramesh Sharma

New Delhi March 13 The Prime Minister, Dr Manmohan Singh, on Tuesday assured a gathering of senior-management executives and business heads that effective steps would be taken to ensure the "sustainability and the stability" of the country's growth process.

Addressing a roundtable on `How high will India fly?', organised by The Economist, Dr Singh indicated that he did not share the perception of those, including the economist, who believed that Indian economy may be `overheated'.

"You have my assurance that our macroeconomic authorities have a creditable track record for macro-economic management. They have taken, and will take, whatever steps are required to ensure the sustainability and the stability of our growth process," he said.

The Prime Minister invited business leaders to rediscover India and be "partners in our progress". Dr Singh highlighted that Indian economy has for the first time in its history recorded over 8 per cent growth in national income for three consecutive years. "Last year, the economy grew over 9 per cent," he said.

He also outlined the three main reasons for the justified optimism about the country's growth prospects.

The three reasons are the rising savings (32 per cent of GDP) and investment rates (34 per cent of GDP); demographic dividend given the age profile of the country's population and broad national consensus on economic policies.

"The stability in policies in the last 16 years is proof that economic policies are not as contentious as often made out. If there are differences, these are on the finer nuances of policy and the relative emphasis on public investment in social sector," he said.

He also highlighted certain areas that needed immediate attention of the Government, especially further deepening and widening of reform of banking and financial system so that the underlying potential of savings and resources can be mobilised and deployed efficiently.

"We need to develop a long-term debt market which will fulfil both the needs of long-term savers and the massive investment needs of infrastructure", he added.

On multilateral trade talks, Dr Singh said that India was committed to an early and positive conclusion to the Doha Round.

He also said that over $300 billion of investments are likely to be made in the Indian infrastructure sector alone over the next few years.

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