Manmohan Singh expresses concern over economic slowdown in India

New Delhi, Oct 22 (ANI): Emphasising that economic slowdown in the country is a matter of concern, Prime Minister Dr. Manmohan Singh on Saturday it should be viewed as a short-term phenomenon in the backdrop of the slowdown in the industrialised Western world.

Inaugurating the 56th meeting of the National Development Council (NDC) here, Dr. Singh said: "The Approach paper proposes a growth target of 9 percent per year. It is relevant to ask whether this is feasible since the economy is currently slowing down. The current slowdown is a matter of concern, but it should be seen as a short term phenomenon, reflecting highly unsettled conditions in the global economy. Growth rates are being revised downwards in all countries for the current year."

Stressing that we must guard against the mood of negativism that seems to have gripped the country, Dr. Singh said: "Recently a distinguished business leader said that in India "the business is better than the mood". Investment is, after all, a reflection of the 'animal spirits' of enterprise. As we in government seek to create the foundations for higher investment, higher employment and growth, we must be particularly mindful of the impact of our policies and politics on public and private investor sentiment."

"In setting targets for the Twelfth Plan we must look at longer term potential, assuming that the immediate short term problems will be overcome. I have absolutely no doubt that our country's longer term prospects are very good," he said.

"Twenty years ago, in my first Budget speech as Finance Minister, borrowing a phrase from Victor Hugo, I had said, "No power on earth can stop an idea whose time has come". I went on to say that "the emergence of India as a major economic power in the world happens to be one such idea" he added.

Pointing that the United Progressive Alliance (UPA) government in the past seven years has been able to achieve an annual growth rate of 8.5 percent, Dr. Singh said: "In the seven years since the UPA government first came to power in 2004, the economy has grown at an average rate of 8.5 percent. India is now regarded one of the fastest growing emerging markets."

"What is particularly encouraging is that many states, including some that grew relatively slowly in earlier years, have shown an acceleration in growth performance. I congratulate the Chief Ministers of all these States. If each of our States adopts the 'national best practice', if not 'global best practice', our nation as a whole will benefit enormously," he added. (ANI)