India headed towards double-digit growth next fiscal: Prez

Upbeat on the Indian economy and its growth trajectory, President Pratibha Devisingh Patil said on Thursday the country's gross domestic product was headed towards a double-digit growth next fiscal.

"This fiscal year, we are confident that our nation's economy will grow at about nine per cent. Next year, we should be on a sustained growth path of 9-10 per cent," Patil said at a function to kick-off public sector Central Bank of India's centenary year celebrations in Mumbai.

According to government data, the Indian economy grew by an average of 8.9 per cent during the first-half of the current fiscal or the April-September period.

This has led many, including the Finance Ministry and rating agencies, to upwardly revise their growth estimates for the year.

Patil said post-financial crisis, India's economic recovery was quicker because of its ability to cope with external disturbances, in spite of being well-integrated with the global economy.

Banks will have to play a pivotal role in the growth story and the first priority for lenders should be to strengthen themselves to support a vibrant and inclusive economy, the President said.

Stressing on the financial inclusion agenda, she asked banks to take a 'holistic approach' in the roll-out of the programme keeping in mind the different financial needs of the target customers.

"Issues like preferential interest rates for the poor and self-help groups in rural areas, as well as extended loan tenures that help them stay invested should be looked into," she said in her address.

Patil also called upon Indian banks to achieve greater size to become 'among the top global players' and listed efficiency as the key which will help the institutions expand.

The integrated global economy should 'spur Indian banks to attain high standards, so that they can compete with the best in the world,' Patil said.