Prime Minister Manmohan Singh today said India is determined to take tough decisions, including cutting down subsidies to contain fiscal deficit and bring back the rhythum of high growth of 8 to 9 per cent.
In his remarks at the G-20 Summit, today, he said ”Like other countries, we too allowed the fiscal deficit
to expand after 2008 to impart a stimulus. We are now focussing on reversing the expansion. This will require tough decisions, including on controlling subsidies, which we are determined to take.”
Referring to the slow down of the Indian economy, he said ”the global downturn and especially the impact on capital flows have played their part. Internal constraints have also affected performance and we are working to correct them.”
He said though the current 6.9 per cent GDP growth might look a reasonable givure, given the situation elsewhere in the world, ”our public is impatient for a return to high growth and faster jobs creation.”
”The fundamentals of the Indian economy remain strong and we are confident of bringing back the rhythm of high-growth of 8-9 per cent per annum,” the Prime Minister added.
–UNI–