PM aims at 9-10% growth

Enthused by the high 8.1 per cent economic growth in the first half of this fiscal, Prime Minister Manmohan Singh today said it was the ambition of the UPA government to raise GDP growth further to 9-10 per cent and bring down tariff rates to Asean levels in 2-3 years.

"In the first half of 2005-06, we touched 8.1 per cent. It is our ambition to raise it to 9-10 per cent in the next 2-3 years," Singh said.

The Indian economy, which grew by an estimated 6.9 per cent in 2004-05, posted 8 per cent growth in the first quarter and 8.1 per cent in the second quarter on the back of a good monsoon and sustained high growth in industry and services sectors. The finance ministry and the RBI expect the economy to grow by 7-7.5 per cent this fiscal.

Expressing optimism over pushing ahead the reforms despite political compulsions, he said "things are moving. Old mindsets do exist, but we are succeeding despite hurdles. We are a functioning democracy. We have had changes in government 4-5 times since the beginning of reform process in 1991. But no government has sought to revise the reform direction.

"We are working on liberalisation of economy, getting government out of business and getting rid of corruption," Singh said.

Tariff rates were coming down and would be brought down to Asean level in 2-3 years. He invited Asean businessmen to participate in India's infrastructure development, which will require huge investment in the coming years.