India’s Prime Minister Manmohan Singh has expressed strongest believe that Indian economy have better scope to grow as well as upgrading GDP in rating agency record.
On Moody’s Analysis about India’s downgrade GDP upto 6 % in the fiscal year to end-March 2013, one of the worse ratings, Mr. Singh said all conclusions is based on causes, but it does not mean that Indian economy would not be able to maintain its better growth than last year’s 6.5 per cent.
“We shouldn’t draw unwarranted conclusions. This year we will see better than 6.5 rcent (gross domestic product) growth of last year,” Mr. Singh said in a statement while attending a function in Rashtrapati Bhavan on oath ceremony of vice-president Hamid Ansari.
Talking to media persons, being confident Mr. Singh said that economy’s fundamentals are still strong. Calling rating agency results of downgrade GDP “a cause of concern”, he added, “One should not draw unwarranted conclusions. We have the highest savings and investments rate in the world.”
In this fiscal year, Indian government set target of 7.6 percent growth rate, while earlier this year, Moody’s rating firm said India’s GDP growth rate is likely to be 5.5 per cent, worse rate in the first quarter of 2012 over nine years, due to political reform, high home loan interest rates.