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Asserting the fundamentals of the Indian economy are strong, Prime Minister Manmohan Singh said GDP would improve in the second half of financial year 2013-14 and the government was committed to get back to a sustainable growth rate of 8-9%. Addressing investors here, Singh said the government would contain the fiscal deficit at 4.8% of GDP and work towards achieving the medium-term objective of reducing the current account deficit (CAD) to 2.5% of GDP.
"The results of our efforts will be visible in the second half of the year. We expect stronger growth in 2013-14 than in 2012-13. The second half of the year should see a distinct turnaround, partly because of the good monsoon and partly because of the steps we have taken," he said.
The Indian economy grew at a four-year low of 4.4% in the April-June quarter. In 2012-13, it clocked a decade-low level of growth at 5%. "It is a fact that our growth rate has slowed down. We grew at an average of about 8% for a decade. Last year, our growth rate dipped to 5%. To some extent, this reflects the slowdown in the global economy and in all emerging markets," Singh said.
The government, he said, was committed to getting India back to a sustainable growth path of 8-9%. "The fundamentals of the Indian economy remain strong...Our forex reserves stand at over $270 billion and are more than sufficient to meet India's external financing requirements," Singh said.
