India can still achieve 9% growth: PM

Prime Minister Manmohan Singh on Tuesday said the country's economy is even now capable of growing by 8-9 per cent, the same rate as it did before the global financial meltdown set in.

"Since our savings rate is as high as 35 per cent. If all work together, we can achieve a growth rate of 8 to 9 per cent, even if the world economy does not improve," he said while winding up the debate on Motion of Thanks to the President's address to joint sitting of Parliament.

The global crisis, Singh said, had affected India's economic growth that slipped from 9 per cent to around 7 per cent in the previous fiscal.

The fall in growth is mainly due to dip in investments, which are key to economic expansion.

The prime minister further said that during the current fiscal the country would grow by 7 per cent.

"This year, we will maintain at least 7 per cent growth rate. In the short run we cannot do better, but this is also good enough," he said.

The Reserve Bank of India in its Monetary Policy for the current fiscal projected the economy to grow by 6 per cent, lower than the 6.7 per cent achieved during 2008-09.

Singh also said that efforts would be made for increased investment in the infrastructure sector to boost economic growth.

"There is considerable scope for increasing public expenditure, particularly on infrastructure projects," he said.

According to official estimates, India requires over $500 billion to improve and upgrade its infrastructure.