Noting that the country is passing through “difficult times”, Prime Minister Manmohan Singh on Sunday said in the current fiscal the growth rate will be 7% but was optimistic that the economy will return to a higher trajectory of 9%-10% in the medium term backed by strong fundamentals.
What is the current position of india?
India's GDP growth fell to 7.5 percent in the first half of the year against the budgetary target of around 9 percent growth for the current fiscal. The economic growth declined to 7.7 percent in the first quarter of 2011-12 and it fell further to 6.9 percent in the second quarter.
What is the reason for the positive prediction?
Manmohan Singh said the main driver of India's economic growth in the medium term would be the high savings rate. "Our domestic savings rate, which currently stands at 33-35 percent of our GDP, will greatly facilitate the realisation of our growth objectives."
The headline inflation has also come down. It had revealed a record low of 0.42 in the week ending december 17.