Stimulus to rollback in 2010: PM

India is now on the path of reform after seeing the worst recession, said Prime Minister of India Dr. Manmohan Singh on November 08 while inaugurating the 25th ‘India Economic Summit’ in New Delhi organized by the World Economic Forum (WEF) in association with entrepreneur chamber Confederation of Indian Industry (CII).

 

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‘India is likely to grow at 6.5% in fiscal year (FY) 2010 and can see a growth of 7% if the monsoon is normal, ” said Dr Singh who is also known as a renowned economist and were on the position of Finance Minister in Narsimha Rao Regime.

“As a medium term objective, Indian will work to achieve a high growth rate of 9% per annum on the back of a strong domestic demand created by a large investment in infrastructure sector,” he added.

For putting India on the path of rapid growth, Dr. Singh has stressed on inviting more FDIs to fuel the capital in the economy. ‘We are particularly keen to rationalize and simplify procedures so as to create an investor friendly environment,’ he said.

After the bold step of Centre’s public sector divestment program, PM has now signaled to phase out the fiscal stimulus measures in the next year.  “There are clear signs of an upturn in the economy. Like other countries we resorted to a significant stimulus and we will take appropriate action next year to wind this down,” he said.

Outlining the strategy of reforming PM said, “Our strategy today is not just to deliver rapid growth, but to deliver rapid and inclusive growth to provide productive employment to our young population and raise living standards in rural areas.”

“We are today a more open economy, open to both trade and investment and integrating successfully with the world at large,” he added.

He also mentioned that India’s growth might be gradual but steady. “All these issues will be addressed through gradual but steady progress in financial sector reforms to make the sector more competitive while ensuring an efficient regulatory and oversight system,”

Earlier Finance Minister of India Pranab Mukherjee at the sideline of G20 summit had indicated to media that the government are mulling to rollback the stimulus package in the next year while for supporting to the traders it continue to provide fiscal concessions and tax concessions to the traders and industries.