New Delhi - India's economy can regain 9-per-cent annual growth rate levels even amid the global recession, Indian Prime Minister Manmohan Singh said Tuesday. During a debate in parliament, Singh exuded confidence that the domestic economy will expand by at least 7 per cent during the current financial year.
The growth rate could reach between 8 to 9 per cent, helped by higher government expenditure.
"I cannot promise that international conditions [ the economic slowdown] will not affect India, but we can still achieve 8 to 9 per cent growth rate, even when the world grows at a lower rate," Singh said in his remarks.
"This year we will be able to maintain a growth of 7 per cent."
Singh said the reason behind his optimistic growth projections was that India's savings rate, which determines the money that can be deployed for development projects was still high at 35 per cent of the gross domestic product (GDP).
"We cannot spend our way into prosperity. But there is scope to increase the allocations, particularly for infrastructure," Singh said, adding that he hoped Finance Minister Pranab Mukherjee will address this issue in the budget likely to be presented early July.
"We have the maneuverability to increase public expenditure."
Data released by the country's Central Statistical Organization recently showed that the Indian economy grew by 6.7 per cent in the financial year that ended March 31, down from 9 per cent a year earlier, owing to the global economic crisis.
