Next fiscal likely to be more difficult: PM

Shillong, Jan 3 (PTI) Expressing concern over the 'effects' of global slowdown on the Indian economy, Prime Minister Manmohan Singh Saturday cautioned that the next fiscal could be 'more difficult'.

"We are facing a new challenge due to the global
meltdown. The next fiscal could be more difficult," Singh said
a day after the announcement of the second stimulus package by
the government.

However, the Prime Minister claimed that despite the
the global economic slowdown, India would achieve a growth
rate of close to 7 per cent this fiscal.

Singh, who was in Shillong to inaugurate the 96th Indian
Science Congress, said, "Global economic slowdown is a
challenge before the country. World is affected by economic
slowdown. We are also affected by the slowdown as world
economy is interlinked."

Stating that the exports of the country was also being
affected by the slowdown, Singh said, "We need to minimise the
impact. New packages have been announced, which will help us
in stemming the adverse effects of the slowdown."

Dr Singh also asked Indian industry to invest more in
R&D and boost demand for science and technology graduates and
researchers.

"Look at the role played by public investment in nuclear
energy, space and defence-related industry in creating the
demand for science and technology graduates. We need a wave of
such investments from the private sector, so that young people
are encouraged to seek a career in science," he said.

He added that "demand-side stimulus must come from
institutions and industry".

"Several schemes and programmes based on public-private
partnership have been launched. We are encouraging partnership
programmes with the corporate sector to promote privately-
funded research. I am happy to learn that NASSCOM and FICCI
have been engaged in this effort," said Singh.

Singh also assured to double the investment in science
from the present one per cent of the national income to two
per cent. PTI RTJ