NEW DELHI, Aug 15 (Bernama) -- India, Asia's third largest economy, will grow more than the 6.5 per cent achieved in fiscal years 2011/12, despite the external and domestic challenges, Prime Minister Manmohan Singh said today.
"The global economy is passing through a difficult phase. There have also been domestic developments hindering our economic growth.
"Last year India's Gross Domestic Product(GDP) grew by 6.5 per cent. This year we hope to do a little better," he added.
India's GDP growth for the first quarter of this year hit a nine-year low of 5.3 per per cent, amid a widening trade gap, inflation, lack of reforms and a weak currency.
Manmohan acknowledged that the lack of political consensus on many issues as an impediment for rapid economic growth in the country of 1.2 billion.
He said however, the government, was determined to leave no stone unturned to encourage investment and growth, which are crucial to the nation's security.
"If we do not increase the pace of the country's economic growth, take steps to encourage new investment in the economy, improve the management of government finances and work for the livelihood of the common man and energy security of the country, then it most certainly affects our national security," he said in his Independence Day speech here, today.
The government he said will work hard for India's rapid growth and shield he country from the effects of the global economic slowdown.
Manmohan cited the government's ambitious targets for roads, airports, railways, electricity generation and coal production, as an effort towards hastening infrastructure development in the country.
He said the government would take steps to increase investments in infrastructure development with the help of the private sector.
"To attract foreign capital, we need to create confidence at the international level," he added.