Focus on reviving growth - Indian PM

INDIA: India’s prime minister on Thursday urged his re-shuffled administration to focus all its efforts on reviving the flagging economy, and said pushing through infrastructure projects would be prioritised.

Manmohan Singh admitted that “growth has decelerated, our exports have fallen and our fiscal deficits are expanding” as he spoke in New Delhi to ministers, including seven new cabinet members brought in on Sunday.

The change of team was seen as an attempt to relaunch Singh’s government after years of policy paralysis, worsening economic data and corruption allegations, with the next general elections due in 2014.

“Of particular concern is the fiscal deficit, which is too high and acts as a deterrent for domestic and foreign investment,” Singh said.

“We will have to overcome the constraints that currently deter or slow down (infrastructure) investment.” Singh’s comments follow a plan unveiled this week to slash the fiscal deficit to three percent of gross domestic product by 2017.

AFP