After Chidambaram, PM hints at more ‘reforms’

Indicating that further liberalisation of the economy is on the cards, Prime Minister Manmohan Singh today said the government will do everything to "allay and alter economic situation" regain growth of 8-9 per cent.

"The steps we have taken recently are only the beginning of the process to revive our economy and take it back to its trend growth rate of 8-9 per cent," Singh said at the 85th Annual General Meeting of trade body FICCI in New Delhi.

He said the global economy is passing through turbulent times, affecting India as well, and "excessive pessimism" at home has hurt the country's growth process.

"But I stand before you to reassure you that our government is committed to doing everything that is possible to alter the policy environment, accelerate economic growth and make the growth process socially and regionally more inclusive," he told the captains of industry.

Finance minister P Chidambaram too had hinted at further liberalisation on Friday, when he told Parliament that some ''bitter medicine'' would need to be taken to turn around the economy. ''The economy is challenged. But I am confident that measures we have taken will put the economy back on rail ... I hope, when I present the Budget, I will be able to paint a much better picture of economy,'' he said.

Growth in GDP slowed to a nine year low of 6.5 per cent in 2011-12; and the Reserve Bank of India has projected an even lower growth rate of 5.8 per cent this year.