PM promises more steps to deal with financial crisis

With signs of growth slowing to its lowest rate in four years, Prime Minister Manmohan Singh promised more steps to deal with the global financial crisis to stablise the economy and support the industry. "We are watching the situation on a day to day basis... If more is needed to stablise our economy, to deal with this international economic crisis, will be done," Singh told reporters on his way back from the three-day maiden visit to the energy-rich Gulf region. During his tour to Oman and Qatar, the Prime Minister projected a 7-7.5 per cent growth rate next year and a return to 9 per cent rate in near future. Yesterday, Goldman Sachs cut its forecast for India's expansion to 6.7 per cent this year from previous estimate of 7.5 per cent. For next year, it projected a rate of 5.8 per cent, lower than 6.3 per cent growth projected by IMF. "We are committed to provide all possible support and assistance to Indian industry and trade to ensure that Indian economy is least affected by this crisis," Singh said. He, however, did not say what more steps RBI may take to shore up growth. "It would be wrong on my part to speculate (on the steps)." Reserve Bank of India had last month said the $1.2 trillion economy may grow at 7.5-8 per cent this fiscal as opposed to 9 per cent in 2007-08. The rate in 2008-09 would be the weakest since 2005. Singh plans to leverage surplus funds in the energy-rich Gulf region for investment in infrastructure sector. "We are watching the situation on a day to day basis. I have set up a committee under my chairmanship, backed by committee of officials headed by the finance secretary."