India to regain 8-9 per cent growth from September, Singh says

Indian Prime Minister Manmohan SinghNew Delhi  - The Indian economy should regain its annual growth rate of 8 to 9 per cent as the world economy begins to recover from September, Indian Prime Minister Manmohan Singh said Sunday.

Despite three stimulus packages announced by the government, Asia's third largest economy grew by only 5.3 per cent in three months ending December 31, the slowest pace in over five years, against 8.9 per cent in the corresponding period a year ago.

"I expect the world economy will recover at least partially by September this year. And if that happens we can hope to go back to the growth rate of 8 to 9 per cent which has been the growth rate of India in last five years," Singh who is touring the north-eastern state of Assam was quoted by the PTI news agency as saying.

Singh said the country's growth rate was close to 7.1 per cent in the financial year ending March 31, while in the current fiscal it will be between 6.5 per cent to 7 per cent.

The Indian leader said that the global economic crisis was caused due to "mishandling of the financial system by the major developed countries".

"From financial crisis, it became a credit crisis. It has affected a large number of developed countries," he said. The crisis has affected India's exports, as well as capital and credit flows to it, he added. (dpa)

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