Economy turning around; GDP growth to exceed 6 per cent: Prime Minister

Indicating that the worst may be over for India's economy, Prime Minister Manmohan Singh said on Wednesday that the economic situation is turning around with inflation coming under control and the gross domestic product (GDP) growth likely to exceed 6 per cent in the current fiscal year.

Speaking on the fourth anniversary celebrations of UPA-II government in Delhi, the Prime Minister said 8 per cent growth rate was possible if the Congress-led coalition is voted to power again next year.

"The economic situation is turning around. Inflation is coming under control. The fiscal deficit is being brought under control. The current account deficit is high, but we will bring it down gradually... We are confident that growth in 2013-14 will be better than 2012-13 and could exceed 6 per cent," he said.

Attributing the decline in economic growth--estimated to be 5 per cent in 2012-13-- to global phenomenon, he said the "slowdown is temporary".

A 6 per cent growth in the current year will set the stage for returning to 8 per cent growth in the current Five Year Plan period ending March 31, 2017.

"This will be difficult, but it is not impossible. We have done it before, and if we receive a mandate next year, we will certainly achieve it again," he said.

Stating that agricultural growth was critical for rural prosperity, the Prime Minister said the government was targeting 4 per cent growth in the sector and is attempting to increase foodgrain production as well as diversifying agriculture.

"This is the foundation which allows us to introduce Food Security legislation in Parliament," he said, adding that the government had also introduced the Land Acquisition and Rehabilitation Act to replace the old and highly unfair colonial legislation. The new Act will be much fairer to those whose land is acquired, Mr Singh said.