Pegging the country’s average economic growth rate at 8.5 per cent during the UPA rule so far, the government today said it was determined to take India to the select league of “middle income countries”.
Presenting the UPA government’s annual report card, Prime Minister Manmohan Singh said that the Indian economy grew at an unprecedented 8.5 per cent growth rate from 2004-05 to 2010-11, despite a severe global financial crisis during 2008-09.
“This crisis slowed down the gaowth rate to 6.8 per cent in 2008-09, but the economy rebounded with a robust growth of 8.6 per cent in 2010-11,” Singh said, adding that an impressive growth was seen in agriculture, industry and services sectors.
“The performance in agriculture has been particularly satisfying, with our farmers producing more than 235 million tonnes of foodgrains, the highest since independence,” he said.
Noting that rapid and broad-based economic growth was essential for inclusive development, Singh said that India was today widely seen as poised to embark on a sustained high growth path of the type achieved by a handful of countries.
“We are determined to deliver on this promise so that India moves rapidly into the ranks of middle income countries, free of the burden on poverty, ignorance and disease that has held us down for so long,” he said.
As per the World Bank classifications, India is ranked among lower-middle income economies along with countries like Sri Lanka, China, Pakistan, Iraq and Indonesia.
The World Bank classifies the economies in broadly four categories — low income (those with Gross National Income per capita of USD 995 or less), lower middle income (USD 996- 3,945), upper middle income (USD 3,946-12,195) and high income (USD 12,196 or more).
Countries like the US, the UK, Australia, France, Germany and Japan are ranked as high-income economies, those like Brazil, Malaysia, Mauritius, Turkey and South Africa are upper-middle income economies.
In the annual report card, Singh further said that the government would look to chart an economic growth process that was “socially inclusive and regionally balanced. “We will endeavour to reduce inequities and inequalities that exist in our country,” he added.
The government said that it has also simplified its foreign direct investment policy and steps have been taken towards an improved taxation environment through Direct Tax Code and Goods & Services Tax regimes.
While listing out growth in various sectors of the economy, the government also said it was promoting people’s ownership of PSUs through its disinvestment programme.
PTI
From the report, the Prime Minister who has released a report card of India’s economic growth of 8.6% in 2010-11 which makes India classify under the “league of middle income countries” tag fixed by the World Bank. The economy fell flat with a growth of 6.8% in 2008-9. The inflation which continues to be upward of 8% does not figure in PM’s disclsoure. Inflation is structural in nature, it remains sticky at 8.5%, government has not appropriately priced in the risk of actual inflation. BRIC countries were to drive the world economy? Where does India figure in it. India’s exports at US $ 245 billion was better than the targetted US $ 225 billion. But in comparison to China’s US $ 3.1 trillion, where are we, Prime Minister. The first generation reforms introduced by you is past its time. When you say impressive growth in agriculture why are you still indiscrimnately importing without logic, necessity and reason? If the Plans fails to produce basic results, why the Plans? Please don’t chart any new economic policy. When you go for disinvestment, please ensure, honest people manage it, lest it becomes a contraversy like 2 G, Adarsh, CVC, Commonwealth and other notority scams. Economic policies must be sound in Economics and not theory which Pranab Mukherjee must have studied in the 1940s.