Indian PM expects economy to grow by 8.5 pct in current fiscal year

Indian Prime Minister Manmohan Singh said Monday that India will witness an 8.5 percent economic growth in the current fiscal year which ends in March next year.

At a press conference, Singh also said the Congress-led United Progressive Alliance (UPA) government is extremely hopeful of containing inflation to 5 to 6 percent by December this year.

"It is not correct to say that our economy in not robust. Many economies collapsed worldwide due to the financial crisis. But India grew by 6.7 percent in 2008-09 and 7.2 percent in 2009-20," the Prime Minister said at a media interaction to mark the first anniversary of the second term of UPA government.

Singh stated that India will witness 8.5 percent growth in the current fiscal, while admitting that inflation was a serious problem and the common man suffered due to high prices.

"Prices continue to be a matter of concern. It is affecting the country's masses but I believe by December we can bring it down to 5 to 6 per cent," he said.

"We are closely monitoring the situation and together with state governments take all steps to bring down prices and protect the vulnerable section of our society from the impact of high prices," Singh said, adding that the UPA government was monitoring inflation.

"But for this (high inflation), international financial crisis and high prices of petroleum prices in global markets are to blame. Besides, droughts and floods in some parts of the country last year also affected our economy as whole," according to Singh.

"But as a result of steps we have taken, there are signs of prices showing a moderating trend," he said.

Singh described the first year of second term of the UPA government as one of "reasonable achievement".

"I believe that the record of our first year of UPA-II is a record of reasonable achievement. I am the first person to admit that we could have done more," he said, adding "there is always room for improvement and for better outcome. But I do believe that the record of our first year is a record of reasonable achievement. "

Source:Xinhua