The Hindu Business Line : Economy on relatively faster growth trajectory: President

NEW DELHI: Helped by stimulus measures, the Indian economy is expected to grow at a relatively high pace despite adverse global economic environment, the government said on Thursday.

In her customary address to the joint sitting of Parliament, the President, Ms Pratibha Patil said, “Even in the prevailing adverse global environment, our economy, it is hoped, would still register a relatively high growth rate.''

Official estimates have pegged GDP growth for FY'09 at 7.1 per cent, considered good at a time when most developed economies are facing recession. She said the government has taken a series of measures to stimulate the economy. These steps would drive demand for goods and services reviving production activities in the manufacturing as well as services sectors.

“India's domestic demand can inject fresh momentum to our economy,'' Ms Patil said, adding that the country's banks are well capitalised and face no threat that many banks face in other parts of the world. She said the government policies have ensur ed that even as the country faces an economic slowdown along with the rest of the world, “our fundamentals are much better.''

The economy has seen unprecedented expansion of 8.9 per cent growth in the last four years and above nine per cent in the last three years.

The President's emphasis on decisive action by Pakistan comes in the midst of sustained efforts by India to make Islamabad act against those involved in the Mumbai attacks on the basis of dossier of evidence provided to it.

Ms Patil minced no words in blaming elements in Pakistan for Mumbai attacks as well as other terror strikes, including suicide attack on Indian embassy in Kabul and blasts in Delhi, Ahmedabad, Hyderabad, Jaipur, Bangalore and Assam in the recent time.

“The country witnessed terrorist attacks in several cities with growing levels of sophistication and assistance from outside the country,'' she said clearly referring to Pakistan. These attacks, she said, were “an assault on all the values that our country stands for''.

Appreciating the world support to India in the wake of these attacks, the President said, “There is greater appreciation in the international community of the threat that exists to the region and the world from terrorism emanating from Pakistan.''

In contrast to the grim picture on Indo-Pak relations, Ms Patil said India's engagement with rest of the world increased substantially as a result of which New Delhi's stature was enhanced. - PTI

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