New Delhi: President Pranab Mukherjee on Tuesday expressed confidence that the economy will return to higher growth path of 7-8 per cent in next two to three years and pitched for revitalising investments in the country. "We are confident that we will return to 7-8 per cent growth bracket in the next two to three years. We need to revitalise investment in the country for this purpose," Pranab said at the inaugural session of IFTDO's World Conference and Exhibition.
India's economic growth was over 8 per cent in 2009-10 and 2010-11 fiscals, but it declined to 6.5 per cent in the following financial year. Further, India's economic growth slowed to a decade low of around 5 per cent in 2012-13 mainly due to global slowdown. "Though our GDP growth in 2012-13 at 5 per cent is the lowest in ten years, it is much higher than that of G-7 countries," he said.
"International projection point out that our growth will continue to be better that that of these economies for the next two years," the President said. Pranab further said that while Indian economy cannot remain immune to a prolonged global financial crisis, "we are working hard to reverse the deceleration in growth."
He said the government is making systems responsive to the industries' need for facilitation and timely clearances. On FDI, the President said: "We welcome foreign investment which has a critical role in bringing in modern technology and globalising our economy."
Investment rate is estimated to be 35.8 per cent of GDP in 2012-13. As per the Economic Review presented by Prime Minister's Economic Advisory Council (PMEAC), investment capital accumulated in projects is not yielding commensurate output. PMEAC has pegged the GDP growth at 6.4 per cent in the current fiscal.