Expressing confidence that India would be able to achieve 7-8% growth again in next 2-3 years, President Pranab Mukherjee has asked industrialists to keep faith in robust fundamentals of Indian economy. While addressing an event, he said that India's economic growth story is intact and there was no reason to be pessimistic as the government is taking corrective measures to boost the economy’s growth.
By adding further he said, the country had recorded growth of 9.3% even in the worst global economic scenario and 6.7% in 2008-09 when financial crisis created virtual turmoil in the largest economies of the world and slowed down the business activities of many developed countries.
However, expressed concern over the declining private investment, which was mainly on the back of tight monetary policy adopted by the RBI, which increased the cost of borrowing, thereby making it difficult for the private sector to raise capital. Though tightening of monetary policy between March 2010 and October 2011 was necessary to combat the rising inflation.
Further, Mukherjee also highlighted the need for an inclusive economic growth and said, with inclusive growth, we can contract the widening gap between the poor and rich people. Without inclusive growth, poor are becoming poorer and in India, there are 355 million people live below the poverty line.
