June 24, 2012 8:55 PM

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PM assures of effective policy measures to enhance economic growth rate

The Prime Minister has said that effective policy measures will be taken to enable the country return to the high growth path. Dr. Manmohan Singh appealed to all political parties to work with the government to restore the momentum of growth. Dr. Singh was talking to media persons last night on board the special aircraft while returning to New Delhi after a successful visit to Mexico and Brazil. Dr. Singh said, problems in fiscal management including balance of payments deficit in the current account will be tackled effectively and credibly. He said that the country is not experiencing stagflation but a slowdown. Dr. Singh assured that policies will be put in place to ensure that the growth rate of the economy will be back to seven percent at the end of this fiscal.Replying to a question, the Prime Minister said, events in the last couple of days convinced him that there are no international solutions to the problems of India's size and diversity. Referring to the balance of payment crisis, the Prime Minister said, India needs foreign investment both in portfolio as well as direct investment. Dr Singh also made it clear that obstacles and policy impediments hindering investments will be removed. He said, as far as the rupee is concerned, it is operating on a system which is a market based exchange rate and the government curbs violent fluctuations. Expressing confidence that with the measures outlined by the government in the recent days, the rupee will return to a more stable path. On the reported lack of co-operation from state governments in implementing projects, the Prime Minister said, when it comes to facing fundamental problems of the country, all political parties will have to work with the Centre in attracting investments and ensuing high growth. On whether he would appeal to Mamata Banerjee to support Pranab Mukherjee's candidature in the Presidential election, Dr. Singh said, the Trinamool Congress continues to be with the UPA. The Prime Minister said he has still not given up hope on the Trinamool Congress finding its way in supporting the candidature of Mr. Mukherjee. He said he had spoken to BJP leaders including Mr. LK Advani to support Mr Mukherjee. Pointing out that he has been pondering over a number of issues including that of the New Finance Minister, the Prime Minister said a number of issues need to be resolved and it will not be proper for him to speak about them when he is outside of the country. On a probable cabinet expansion, Dr. Singh said it is a legitimate expectation and the media will get to know about it when it takes place. Dr. Manmohan Singh reached New Delhi late last night.

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