The Prime Minister Dr. Manmohan Singh has asserted that the impact of measures taken by India to boost economy will be visible soon. In an interview to an Indonesian newspaper Dr. Manmohan Singh noted that India's savings and investment rates are still over 30 per cent of the GDP.
The Prime Minister said that various reform measures to boost domestic investments, attracting more FDI, strengthening the financial sector besides simplifying the tax regime will help Indian economy grow faster.
Acknowledging that there are some supply side bottlenecks, he said those are being addressed to policy and administrative reforms. He added that growth decline in the last fiscal partly due to recession in the global economy.
Dr. Singh said, emerging economy have been effective for the prolong global economic crisis as well as uneven and uncertain recovery. The Prime Minister noted that unconventional monetary policy followed by major developed countries and expectations around its reversal had induced huge volatality in the financial and currency markets.
He said, India- China economic cooperation is very important part for bilateral relationship. On his visit to Indonesia, he added that the country is a key constitutent of India's Look East policy. He said the trade between India and Indonesia is around 20 billion U.S. dollars which is a positive trend and bilateral comprehensive economic agreements will give impetus to growth.
Dr. Singh added that early signing of ASEAN- India services and investment agreements, negotiations on regional comprehensive economic partnership and emergence of an ASEAN economic community by end of 2015 will have a positive effect. Dr. Singh reached Jakarta on the second leg of his visit.
A number of agreements are expected to be signed between the two countries during the visit.
Earlier in the day while addressing East Asia Summit in Brunei's capital Bandar Seri Begawan, Dr. Manmohan Singh called for collective action to tackle global economic uncertainty and political turmoil that impact Asia Pacific region also. Dr Singh said that prosperity of people can be realized only by inculcating a cooperative temper.
He emphasized on building infrastructure to further ASEAN connectivity and innovative means of financing the infrastructure needs. The Prime Minister said the challenges of energy, food, health and human resource Development must also be met to reinforce growth and regional economic integration. Dr. Singh said that the principles of maritime security, including the right of passage and unimpeded commerce are important.
The Prime Minister said that India and ASEAN have established a comprehensive agenda of cooperation and a wide-ranging framework to pursue it over two decades.
Dr. Manmohan Singh said that India stands ready for the signature of the India-ASEAN Free Trade Agreement on Services and Investment by the end of this year and its early implementation. This will complement India-Asean’s Agreement on Goods and bolster our economic partnership.
The CEOs of India and Indonesia held detailed discussion on boosting economic partnership ahead of Prime Minister's arrival in Jakarta today. The two sides agreed to promote business contacts in IT, mining, power, clean energy and other infrastructure sectors apart from agro based industry.
Addressing the forum, Commerce and Industry Minister Anand Sharma called for creating greater business opportunity for the two countries.
