Committing to carry out reforms to facilitate higher investment flows, Prime Minister Manmohan Singh expressed hope that the Indian economy will revert to high growth path of 9% from next fiscal and even achieve double digit expansion in coming years. “It is my expectation that we will return to a 9% growth path in 2011-12. I am confident that the strong fundamentals of the Indian economy will enable us to achieve our objective of double digit (growth) in the coming years,” Singh said. He, however, admitted that there are challenges to recording such a high economic growth. “I do not underestimate the many challenges we face in achieving such high levels of growth,” the Prime Minister said. Singh said his government is reforming both direct and indirect tax system. Besides, reforms in financial sector, capital markets, education, skill development are being carried out to create favourable climate for investment. “We are determined to continue the process of economic reforms that will create a favourable investment environment and facilitate higher investment flows,” he said. The Prime Minister hoped that there would be robust rebound in Indo-Japan trade and pegged it at over $20 billion by 2012 from $10.3 billion in 2009-10. Singh said the current trade between the two countries is low as well as unbalanced. India had trade deficit of over $3 billion during 2009-10 with Japan. Though global financial crisis did not have direct impact on India, its ripple impact slowed the growth to 6.7% during 2008-09 against 9% in the previous three years.
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