Reforms needed to achieve accelerated growth, inclusion: President

Stressing the need to create conditions to increase investment rate, President Pranab Mukherjee said bringing economic growth back to 8 to 9 per cent was a "collective challenge" before government and Industry and further reforms were required to meet it.

"Today India is among the fastest growing countries in the world.... India's share in world GDP has doubled in the last two decades.... It became the third largest economy in the world on purchasing power parity basis this year.

"We have, therefore, a collective challenge to reverse this deceleration in growth and raise it to 8 to 9 per cent that we had recorded for most of the years in the previous decade," Mukherjee said.

The President said the recent global financial crisis did not affect India, as it has some of the stronger economies, is a testimony to the maturity of the country's regulation.

"Nevertheless to realise the full potential of this sector and achieve an accelerated growth and inclusion, further reforms are required in banking, pension and insurance," he said.

He said the rapid economic growth after 2003-04 was accompanied by a rise in the investment rate. But it has declined after reaching its peak in 2007-08 "and for this, we have to create the conditions required for it."

He was addressing Annual Session of the Chief Ministers' conclave organised by PHD Chamber.