India can grow at double-digit rate: PM
For two decades, the Indian economy grew at around 6% pa. But in the past four years India has recorded an 8% annual growth. In H1 FY07, the growth rate was 9.1%
India has the potential of achieving the double-digit growth rate in the coming years given the country's stable macro-economic indicators, Prime Minister Dr. Manmohan Singh said on Friday.
The Indian economy is now on a new path of accelerated growth, the Prime Minister said. For two decades, the Indian economy grew at around 6% per annum. But in the past four years India has recorded an 8% annual growth. In the first half of the current fiscal year, the growth rate stood 9.1%.
The manufacturing sector is fast catching up with the services sector, Dr. Singh said. These two sectors account for almost 80% of India's national income, he added. This remarkable growth is being led by an investment rate of 31% of GDP, financed almost entirely by a matching savings rate of over 29%, the Prime Minister said.
"The challenge, however, is not only to sustain high growth rates, but to make this process inclusive of the demands of equity and environmental sustainability," Dr. Singh said at the Business Luncheon in Tokyo.
The Prime Minister said that the fast economic growth had helped millions of Indians to emerge from abject poverty. This is reflected in the decline of the poverty ratio from above 50% in the 1970's to below 20% today, Dr. Singh said. This has added large numbers to India's booming consumer markets, he added.
China’s trade with India is nearly three times India’s trade with Japan and Korea’s trade with India is almost equal to Japan’s trade with India, Dr. Singh said. The time has come for Japanese companies to reverse this situation, he said, adding that Japan must regain its historic status as India's most important business partner in Asia.
"I am happy that there are indications that the trend is already beginning to change," the Prime Minister said. Since the end of 2004, over US$5bn have been invested from Japan in India’s capital markets. This, he said was a ringing endorsement of the potential and profitability of investing in India.
The number of Japanese companies in India have grown by 50% in the last three years, Dr. Singh said.
An economically resurgent India today offers a variety of investment opportunities, both in traditional and new sectors, in labour-intensive and knowledge-based industries, the Prime Minister said.
"In bio-technology, nano-technology, information technology, automobiles and aerospace, textiles and leather, marine products and in many other areas Japan and India can come together," he said.
source: India Infoline
:SugarwareZ-064:
For two decades, the Indian economy grew at around 6% pa. But in the past four years India has recorded an 8% annual growth. In H1 FY07, the growth rate was 9.1%
India has the potential of achieving the double-digit growth rate in the coming years given the country's stable macro-economic indicators, Prime Minister Dr. Manmohan Singh said on Friday.
The Indian economy is now on a new path of accelerated growth, the Prime Minister said. For two decades, the Indian economy grew at around 6% per annum. But in the past four years India has recorded an 8% annual growth. In the first half of the current fiscal year, the growth rate stood 9.1%.
The manufacturing sector is fast catching up with the services sector, Dr. Singh said. These two sectors account for almost 80% of India's national income, he added. This remarkable growth is being led by an investment rate of 31% of GDP, financed almost entirely by a matching savings rate of over 29%, the Prime Minister said.
"The challenge, however, is not only to sustain high growth rates, but to make this process inclusive of the demands of equity and environmental sustainability," Dr. Singh said at the Business Luncheon in Tokyo.
The Prime Minister said that the fast economic growth had helped millions of Indians to emerge from abject poverty. This is reflected in the decline of the poverty ratio from above 50% in the 1970's to below 20% today, Dr. Singh said. This has added large numbers to India's booming consumer markets, he added.
China’s trade with India is nearly three times India’s trade with Japan and Korea’s trade with India is almost equal to Japan’s trade with India, Dr. Singh said. The time has come for Japanese companies to reverse this situation, he said, adding that Japan must regain its historic status as India's most important business partner in Asia.
"I am happy that there are indications that the trend is already beginning to change," the Prime Minister said. Since the end of 2004, over US$5bn have been invested from Japan in India’s capital markets. This, he said was a ringing endorsement of the potential and profitability of investing in India.
The number of Japanese companies in India have grown by 50% in the last three years, Dr. Singh said.
An economically resurgent India today offers a variety of investment opportunities, both in traditional and new sectors, in labour-intensive and knowledge-based industries, the Prime Minister said.
"In bio-technology, nano-technology, information technology, automobiles and aerospace, textiles and leather, marine products and in many other areas Japan and India can come together," he said.
source: India Infoline
:SugarwareZ-064: