New Delhi: Prime Minister Manmohan Singh has said that conditions were favourable for India to attain and sustain economic growth of 9-10 per cent. He cautioned, however, that it would require an increase in the savings and investment rates.

India's savings rate has reached 34 per cent of gross domestic product (GDP), and the investment rate now stands at over 35 per cent. As Asia's third-largest economy, the Indian economy grew at 9.4 percent during 2006 – 07, second only to China. The annual growth rate dropped to 8.9 percent in the September quarter, below 9 percent for the first time in three quarters, mainly on account of a slowing of the industrial output that happened due to monetary tightening measures that were aimed at roping in inflation.

India is poised for a repeat performance of its average of 8.6 per cent growth of the past four fiscal years, during the financial year 2007 – 08. The Prime Minister said that "It has been a good year for the Indian economy, for our working people and our entrepreneurs. The conditions are today favourable to achieve and sustain 9-10 growth rate," speaking at the inauguration of the Pravasi Bharatiya Divas.

For the full text of the Prime Minster's speech, click here.