Lack of coordination in politics hampering growth: Indian PM

On Board PM's Special Aircraft, Aug 31 (PTI) Prime Minister Manmohan Singh today blamed the "lack of cohesive coordination" in domestic politics as one of the factors hampering growth rate. However, he asserted that "we should count our blessings" that despite global economic crisis the country was growing at 6.5 percent, "There is a big economic crisis and even after that we have been able to maintain 6.5 percent growth rate" at a time when the US is only talking about 2 percent growth rate and Europe is talking about 0 percent, he told reporters accompanying him on his return from Tehran where he attended the Non-Aligned Summit. However, he said he would have liked to lay a foundation for nine percent growth rate but international events have not helped. "But lack of cohesive coordination in our domestic politics has also been a factor," he said on conditions that hampered higher growth. Noting that there were several difficulties in bringing in "Goods and Services Tax", which would have helped in improving the GDP by 1-2 percent, he said it would have also streamlined the country's tax system. Singh said government's effort will be to improve upon the growth performance of 6.5 percent and creating an environment conducive to growth of saving and domestic investments. Fortunately country's domestic savings and investment rates are still very high and if the climate to improve industrial infrastructure like railways, telecommunications, and roads was created, growth can be pushed forward, he said. PTI