Signals from stock market, FDI flows positive: PM

Written by Economy Bureau | New Delhi, Oct 29 | Updated: Oct 30 2007, 04:29am hrs
Prime Minister Manmohan Singh on Monday said signals from stock markets and foreign investment flows are positive and the government will maintain an encouraging atmosphere for investors.

Be it FDI flows, investments in stock markets, investments in our knowledge economy, the signals are all positive. We will work to keep these positive, he said at a forum of the global CEOs organised by the Fortune magazine here, on a day the benchmark Sensex surged past the record 20,000-mark.

Talking about growth, the Prime Minister further said India would continue to integrate with the global economy while achieving a sustained annual economic growth of 9-10% over many years to come.

He said India viewed the world as a planet of opportunities and that despite the risks associated with globalisation, the country was confident of utilising these opportunities. As India grows, it seeks a wider engagement with the outside world, as an open market and as an open society. We do want to be more integrated with the global economy, he said.

He said the road to reform in India over the past two decades had been a one-way street and even with different political parties taking charge, no policy reform was reversed.

The Indian economy, and its globalisation, has moved in only one directiontowards greater and greater freedom for individual creativity, initiative and enterprise and towards increased integration with the world economy. This is a path which has come to stay, he said

Expressing satisfaction over economic growth, Singh complimented the economic management team consisting of finance minister and deputy chairman of Planning Commission for managing the economy so efficiently. He said 9-10% economic growth is sustainable for many years.

It is undeniable that India is on a new growth trajectory. A trajectory where sustained economic growth of 9-10 percent per annumgrowth rates which were considered impossible even five years agoseems possible for many years to come.

He exhorted global investors to invest in India and have faith in the Indian growth story. I know very well that investment in the final analysis is an act of faith. I invite you to have faith in our country. I assure you that your faith will not be misplaced.

He said India was committed to the successful functioning of a rule-based multilateral trading system and wanted an early successful completion to the Doha development round.