Hard decisions necessary to restore investor confidence: PM

"We are at a point where we can reverse the slowdown in our growth. We need a revival in investor confidence, domestically and globally. The decisions we have taken recently are necessary for this purpose," Singh said in his address to the nation.

The government need to do more and we will do more, he said.

"But to achieve inclusiveness we need more growth. And we must avoid high fiscal deficit which causes a loss of confidence in our economy," he said.

India's economic growth rate slipped to nine-year low of 6.5 per cent in 2011-12 and as per the estimate of the Reserve Bank, the growth rate is likely to remain at the same level.

Promising to put the country back on the path of high and inclusive growth, Singh said, "At times, we need to say 'No' to the easy option and say 'Yes' to the more difficult one. This happens to be one such occasion. The time has come for hard decisions."

Referring to the issue of rising fuel subsidy and high fiscal deficit, he said, "Money does not grow on trees. If we had not acted, it would have meant a higher fiscal deficit, that is, an unsustainable increase in government expenditure vis-a-vis government income." MORE