Next fiscal likely to be more tough: PM

Singh confident of 7% gdp growth this fiscal.

Expressing concern over the “effects” of the ongoing global slowdown on the Indian economy, Prime Minister Manmohan Singh today cautioned that the next financial year could be “more difficult”.

“We are facing a new challenge due to the global meltdown. The next fiscal could be more difficult,” Singh said a day after the government announced a second series of steps to stimulate the economy. He, however, said that India would achieve a growth rate of close to 7 per cent this fiscal despite the global economic slowdown.

Singh, who was in Shillong to inaugurate the 96th Indian Science Congress, said, “The economic slowdown is a challenge before the country. World is affected by economic slowdown. We are also affected as the world economy is interlinked.”

Stating that exports were also being hit, Singh said, “We need to minimise the impact. New packages have been announced which will help us stem the adverse effects of the slowdown.”

Singh called upon industry to “invest more” in research and development (R&D) and “boost the demand” for science and technology graduates and researchers.

“Look at the role played by public investment in nuclear energy, space and defence-related industry in creating the demand for science and technology graduates. We need a new wave of such investment from the private sector so that young people will be encouraged to seek a career in science,” said Singh. He added the “demand-side stimulus must come from institutions and industry”.

“Several schemes and programmes based on public-private partnership have been launched. We are encouraging partnership programmes with the corporate sector to promote privately-funded research. I am happy to learn that Nasscom and Ficci have been engaged in this effort,” he said.

Singh also promised to double the investment in science from 1 per cent of national income to 2 per cent of national income.

Further, he said, bills for “protection of intellectual property rights for publicly funded research” and for “medical devices regulation” were on the anvil.

Stating that the Centre’s developmental initiatives would ensure “that sun will rise and shine forever on the North-East,” he said the Centre had developed and implemented special packages for supporting science education and research in colleges and universities in the region.