PM admits to problems within the UPA coalition

Urges political parties to work together to realise 9% yearly growth rate

Acknowledging problems within the ruling coalition, Prime Minister Manmohan Singh on Thursday said political parties need to work together to realise a nine per cent annual growth rate. Talking to reporters, he, however, refused to comment on any timeframe for allowing Foreign Direct Investment (FDI) in retail. "I will not say anything. Parliament is in session," he said.

Elaborating on his statement yesterday, blaming lack of political consensus hampering growth, Singh said, "My purpose was to create a climate where all national parties will work together and give primacy to national issues."

On problems within the ruling coalition, he said, "I am not saying that there are no problems. We need to re-think. India needs to think big. Political parties need to work together to realise the high growth of nine per cent which India is capable of," Singh said. On unveiling tax reforms through implementation of goods and services tax (GST),Singh said, "If GST is done, there will be a powerful signal on the economic front...The finance ministry is working with Chief Ministers and there is an empowered group.” On linking development to national security, he said national security will be affected if the economy did not perform well.

"There will be dissatisfaction among the people. There will be unemployment, which can become a problem," Singh said. When asked about rating agencies forecasting low growth for the Indian economy, he said "I do not want to criticise any rating agency. Sometimes, they overdo."