On Wednesday, Prime Minister Man Mohan Singh made a paradigm for rapid and conclusive actions to accomplish 8 per cent economic growth as he called5 per cent GDP expansion as clearly upsetting.
Addressing the CII AGM P.M. reiterated that the government will relax the FDI policy and take steps to curtail inflation. He added India can revert to the high growth of 8 per cent even at the same time as dealing with hitches like corruption, bureaucratic inertia and the snags in managing coalition government.
While commenting on the fact that the high fiscal deficit is intolerable he further said that the government is determined to do everything possible to achieve the target of fiscal deficit and bring down to 3 per cent by 2016-17.
He expressed hope that the Current Account Deficit would moderate in the current financial year from a high of 5f 5 per cent documented in 2012-13.
He said the government, will do everything possible to ensure that foreign fund flows remain strong and re-establish the macro-economic poise.
"Business mood which was unduly optimistic in 2007, is unduly pessimistic today … I would urge Indian industry to have faith in our determination and avoid getting swamped by negativism”, the Prime Minister said
He hoped that the fiscal development has led to growth in the CAD, which is likely to be about 5 per cent of GDP in the year 2012-13.