Averring to the resilience of the Indian financial system to have even weathered the global financial storm, PM Manmohan Singh today exuded trust in the economic system being able to peg a 8.5% increase during the existing financial year and return to the 10% growth route in the medium term.

Dr. Singh made these remarks during an hour and half long Press Conference on the completion of a year of UPA-II.

The PM talked over a host of economic matters like inclusive and sustainable growth, tapping of black money, affirmative action, price rise, low proceeds from the allocation of 2G spectrum as compared to the bidding of 3G spectrum, the G20 Summits, various Free Trade Agreements (FTAs) and impact of extremist violence on development.

He said that many nations throughout the world collapsed in the face of the global financial crisis, but India held on to its own, maintaining a growth rate of 6.5% in 2008-09, but recovering to 7.2% in the last fiscal.

Dr. Singh was, however, positive that the average price level would be contained at 5 per cent level in the current fiscal. He said as a result of the steps the government has taken prices have started moderating and would taper off by December.

Explaining the reasons for rising prices, Dr Singh said some States were affected by severe floods and droughts.

He said a worrisome problem in the present scenario was the tendency for the international commodity prices to move Northwards, which included the prices of crude oil.

The Prime Minister said India needed a rapidly growing economy to generate productive employment and also resources to finance its ambitious social and economic programmes. He said he was convinced that given the country's extraordinary high savings and investment rates, the 10 per cent per annum growth target was achievable in the medium term.

But, this would need efforts to boost investment in social and physical infrastructure, improve productivity in agriculture and give a fresh impetus to the manufacturing sector.

He said the last few years have been exceptionally hard years for the Indian financial system and the September-October of 2008 saw a global financial crisis which threatened to push the world into a never before kind of recession.

The Prime Minister said his priority would be to protect the economy from the global slowdown and ensure that the momentum of inclusive growth does not get watered down.

He said his administration has shown to the world that it could offer up a congenial environment for bettered progress and an inclusive growth both during its first five years in office and in the first year of UPA-II. (With Inputs from Agencies)