NEW DELHI: Prime Minister Manmohan Singh on Friday dangled the carrot of economic growth accelerating to double-digit levels in the next two
years before investors and vowed to reduce bottlenecks in setting up projects, a day after steel tycoon LN Mittal lamented about the country’s inability to execute mega investment projects.
Luring non-resident Indians (NRIs) to invest in the country, Mr Singh said the government was “optimistic of returning to sustained growth of 9-10 % in a couple of years”. Inaugurating the Pravasi Bharatiya Divas, a gathering of the Indian diaspora, he said: “I cannot say that we have delivered in full measure on the enormous promise and potential of our country.”
The prime minister’s forecasts could trigger analysts to upgrade their forecasts. Most independent economists agree that the Indian economy is out of the woods and set to move to a higher growth trajectory in the years ahead.
India, which witnessed an unprecedented growth of more than 9% between 2005 and 2008, desperately needs to set right creaking infrastructure in areas such as power, roads and ports. However, red tape, legal problems with various laws of the states and central government overlapping, and land acquisition from villagers are frustrating industry groups.
But Mr Singh said some had to do with India’s democratic set-up and the diversity of culture , and expressed confidence the country will still move ahead.
“I recognise the frustration well-wishers feel when they lament why things don’t work faster or why well-formulated plans and policies don’t get implemented as well as they should be,” Mr Singh said. India may be a slow-moving elephant, but “it is equally true that with each step forward , we leave behind a deep imprint”, he said and assured that the government would address bottlenecks in infrastructure, farming and healthcare.
Mr Singh’s assurance comes after Mr Mittal on Thursday publicly displayed his anger about the crawling pace of projects saying, `` the entire country is to be blamed for the delay in executing the projects”.