Expressing hope that the slowdown in Indian economy would not last long as the government is working hard to salvage the situation, Prime Minister Manmohan Singh on Thursday said he expected positive impact of the initiatives to open up several sectors to foreign direct investment (FDI) in the coming months.
In his address to the nation from the rampart of Red Fort on the occasion of Independence Day, Dr Singh said, “I believe that this phase of slow growth in India will not last long... The average rate of economic growth that we have attained in the last nine years (7.9 per cent) shows what we are capable of.”
The government expects the economic growth to recover to 6 per cent in the current fiscal, from the decade low level of 5 per cent recorded in 2012-13.
“... Economic growth has slowed down at present and we are working hard to remedy the situation,” he insisted, adding that the government has eased investment caps in several sectors and simplified procedures to boost flow of FDI.”
In July, the limit on foreign holdings in telecom was raised from 74 per cent to 100 per cent while restrictions in a dozen other sectors from insurance to tea plantations were eased or abolished.
Besides, it has also liberalised the ECB norms for corporates.
“In the coming months, we will see visible results of these efforts to increase investment. Our growth will accelerate, new employment opportunities will be generated and there will be improvements in the infrastructure sector,” Dr Singh asserted.
The government will kick-start a number of new infrastructure projects including 8 new airports and two new seaports in the coming months to boost sluggish economic growth, Dr Singh said while listing out government’s initiative in this key sector.
“It is not only our country that is facing economic difficulties. The last year has been difficult for the world economy as a whole. Major European nations are experiencing a slowdown these days,” he added.
The Prime Minister said rapid economic growth is an imperative, as without it the country cannot possibly achieve targets of removal of poverty, provision of good quality education and health services and creation of new employment opportunities.