Indian economy will have a nine percent growth rate by 2011: PM

Moscow, Dec.8 (ANI): Visiting Indian Prime Minister Dr. Manmohan Singh on Monday said that he expected the Indian economy to enjoy a growth rate of nine percent once again by the year 2011.

Addressing the India-Russia CEO Council along with Russian Prime Minister Vladimir Putin on Monday afternoon after earlier meetings with Russian President Dmitry Medvedev, Dr. Singh said: "Our saving and investment rates point to our ability to go back to go back to our growth rate of 9 percent in about two years time."

"India's global leadership in the field of Information technology sector is well recognized collaborations in BPO sector with Indian companies will brought significant benefits to several companies and countries particularly in Europe and America," he added.

Dr. Singh said the country's economy, despite the global slowdown, has been growing at a rate of 6.7 percent and this year it would grow at the rate of about seven percent.

Dr. Singh also made a mention of the bilateral agreements signed between the two countries, including a 100 million dollar agreement on extending a "dollar credit line between EXIM (Export-Import) Bank of India and Russian Bank of Development and Foreign Economic Affairs.

According to the deal, it is aimed at promoting the export of capital goods from India. EXIM Bank will give a 100 million dollars credit line to the Russian Bank of Development and Foreign Economic Affairs.

Speaking earlier at a joint press conference with President Medvedev at the Kremlin, Dr Singh said: "We welcome greater Russian role in India's nuclear energy sector. We have decided to set a target of 20 billion dollars by 2015. We have identified the areas of energy, information technology and communication and pharmaceuticals as the new thrust areas of cooperation."

"Rough diamonds is another area and, of course, there are the traditional commodities like tea and other commodities, which have been part of the traditional basket of goods and services. I think Russia is emerging as a major investor in India," he added.

Reliance Industries Chairman and Managing Director Mukesh Ambani heads the India-Russia CEO's Council. Several Russian business honchos also attended the meeting, which was aimed at boosting the moribund trade relationship between the two countries.

Both countries have decided to meet the modest bilateral trade target target of 20 billion dollars by 2015 and 10 billion dollars by 2010.

India and Russia have also decided to deepen their cooperation in the hydrocarbon sector and pharmaceuticals along with defence, atomic energy and technology.

Dr Singh also invited Russian business leaders to cooperate in the field of information technology. By Naveen Kapoor (ANI)