Difficult decisions needed to achieve 9% growth rate: Manmohan Singh

Forced to put on hold key policy reforms policies on  Monday, Manmohan Singh said difficult decisions were needed to revert to 9% growth trajectory as the path ahead is not easy.

We grew at 9% for five years before 2008, and I do believe that we can get back to that kind of growth rate provided we can agree on a number of difficult decisions," he said replying to the debate in the Lok Sabha on Motion of Thanks to the President for her address.

Although Singh did not elaborate on the difficult decisions, the critical policy actions on which the government has not been able to take any action because of political compulsions include opening of the multi-brand retail to foreign investment, deregulation of diesel prices, raising FDI cap in insurance sector and pension and tax reforms.

Singh also sought support from political formations to raise economic growth rate saying "we need a broad-based national consensus covering all sections of political opinion represented in this august House."

He said that 12th Plan, to be placed before the National Development Council (NDC) around mid-year, will lay out a credible plan of action for faster, sustainable and more inclusive growth. "I do not wish to go into details, but only wish to remind the members that our path is not easy."

Indian economy used to grow by over 9% before the global financial meltdown pulled it down to 6.7% in 2008-09. The growth in the current fiscal is likely to moderate to three-year low of 6.9%, down from 8.4% in the two preceding years. For the next fiscal, the government expects a growth of 7.6%.