PM urges industry to beat pessimism

Last Updated: Wed, Apr 03, 2013 06:27 hrs

New Delhi, Apr 3 (IBNS) Prime Minister Manmohan Singh on Wednesday said he does not believe that India will continue to grow at 5 percent since it has grown on an average of 8 percent in the past one decade and urged industry to not be unduly pessimistic.

Addressing the Confederation of Indian Industry (CII) AGM here, he said: "I do not believe our future is 5 per cent growth. We grew at an average of about 8% in the last ten years and we can get there again."

"The consensus today is that unless the Government acts swiftly, our growth already decelerated, will be perennially stuck at 5 percent," he said.

He said the 5 percent growth is disappointing but it can be reversed.

The PM said in 2007, he often heard it said that government had become irrelevant because India will grow at 9 percent whatever the government does.

The PM said: "We are seeing a temporary downturn which does happen. We must recognise it as such and take corrective action."

He said he would propose to strike a contrarian note again.

"If the business mood was unduly optimistic in 2007 I think it is unduly pessimistic today," he said addressing the India Inc.

The PM said: "I have always believed that both government and business have to be partners in writing the story of development."

The PM also spoke about inclusive growth by way of employment generation.

"I firmly believe that good employment is the best form of inclusion. I want industry to work closely with government in promoting skills," he said.

He said the recent announcement on promoting skill based training through the private sector "should help us in making our youth ´work ready´".

He said the recent legislative measures in the Banking Sector have paved the way for granting of new bank licences by the Reserve Bank.

He said he was encouraged by the progress that "we have made in the last three months by the work of Cabinet Committee on Investments (CCI)."

The CCI has made a difference in speeding up clearances, he said.

The PM said India financed a CAD of over $90 billion in 2012-13 without a loss in reserves.

" We can act forcefully to remove the many domestic constraints that have arisen to get the economy to perform at full potential," he said.

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