India poised for 7-8% economic growth, says PM

New Delhi, March 21 | Updated: Mar 22 2005, 05:43am hrs
Prime Minister Manmohan Singh on Monday said India is poised to deliver 7-8% economic growth in the next fiscal.

"The growth rate has almost been 7% this year on the back of 8% previous year. All indications at the moment are that we may be able to deliver a 7-8% growth even next year," he said inaugurating the centenary celebrations of Phd Chamber of Commerce and Industry here.

It is undeniable that India is "at a cusp" in its development trajectory, he said adding the government is committed to putting in place a set of policies which will provide the necessary environment for making this growth possible.

After years of so-called Hindu rate of growth, the economy broke fresh ground in the nineties and has been able to deliver growth in the range of 5-6%, the Prime minister said.

"This in itself has enabled considerable enhancement in income in general. It has also helped reduce poverty significantly. We are now at a point in time where we need to accelerate this growth further and jump into 7-8% band," he said.

Mr Singh said this extra 1-2% points in the growth rate, which seem miniscule at a glance, could translate into a substantial difference over a period of time.

"In 20 years, a growth rate of 8% will deliver twice as much as compared to a rate of 5%," he said adding "we are committed to creating an environment where creativity and enterprise will flourish, where innovation and knowledge will be rewarded and where growth process will be inclusive and benefit all sections of society."