"Our economy is probably on a growth path which if sustained for a decade or so, will enable us to eradicate mass poverty, ignorance and disease. For the first time in history our economy has recorded over 8 per cent growth for three consecutive years," he pointed out.

"Last year the economy grew at over 9 per cent. Many analysts believe that our economy has moved on to a new growth trajectory. There are some including the 'The Economist', who believe that the economy may be over-heated. Our macro-economic authorities have a creditable track record for macro-economic management. They have taken, and will take, whatever steps are required to ensure the sustainability and the stability of our growth process," Dr Singh said.

He urged the media particularly 'The Economist' to be more positive and take a more informed view of his government's performance while covering the strides made by the Indian economy.

"I hope this Round Table on India will give you an insight into the trends that characterise the Indian economy and help you take a more informed view of our performance and prospects," he said. 

"Earlier this week the BBC reported results of a worldwide opinion poll on the global image of various countries. It was heartening to see India emerge on top as a country that had improved its global image. There are good reasons for this. The Indian economy is doing better and Indians are doing better, both at home and abroad," he said.

"I do believe today there is an air of justified optimism about India's economic prospects. There are at least three reasons for such optimism. First, and foremost, our savings and investment rates are rising and are presently at around 32 per cent and 34 per cent of GDP, respectively. I have often felt that official statistics in India understate the true values of these figures. I also have reason to believe that they will rise further by another 5 per cent in 5 to 6 years to come," Singh added.

He stressed that the external economic and strategic environment is more favourable than at any point of time before.

"We are fully aware of the challenges at hand and it is our intention to deal with them as best as we can, within the constraints imposed by our polity. I do believe that there is widespread political consensus on many issues and we can move forward in many areas of policy. The steps we have taken to increase investment in infrastructure and in agriculture is one example of what is achievable," he said.

He emphasised that the growth in the infrastructure, services and the manufacturing sector was attracting huge foreign direct investment.

"This year, for the first time, FDI inflows have exceeded FII inflows. This is a measure of growing global confidence in India's long term prospects. It is

the intention of our government to create and sustain an environment conducive to risk taking and long term investment in India. Over the past few years, our FDI regulations have also been made more liberal, transparent and investor friendly," Dr Singh claimed.

India expects an investment of $300 billion in infrastructure sector alone over the next few years and commended the manner in which public private sector participation is yielding good results.

He expressed satisfaction on the growth pattern of the manufacturing and services sectors. "In the long run, it would be our endeavour to maintain and enhance our competitiveness in these sectors so that they continue to be major sources of growth and employment and also for productivity growth. Our policy stance would be determined by this broad objective. We are working to ease the supply constraints in the availability of skilled labour," he said.

He emphasised that his government would like to create an environment where the investors particularly NRIs would take the risk of making long term investments.

"Over the past few years, our FDI regulations have also been made more liberal, transparent and investor friendly.  A comprehensive review of the FDI policy was undertaken last year with a view to consolidate steps already taken and further rationalize policy in new areas. As a result, there are very few sectors, which have any investment constraints. A liberal and transparent FDI policy for industrial, services and infrastructure sectors is now in place," he said.

He admitted that more needs to be done in various sectors to keep the momentum of the growth this includes reforms in banking sector and financial institutions and developing long term debt market which would take care of not just the long term savers but "also massive investment needs of massive investment in infrastructure that we need.

The labour markets too need to be made more efficient, although I often feel that this problem is overemphasised. Since 90 per cent of India's labour force is in the so called unorganised sector and this sector is not constrained by any unwieldy," he said.

Dr Singh said India's GDP is fair compared with USA and Japan. India wanted early conclusion of Doha round. "In order to break the impasse, developed countries must make meaningful offers to reduce the huge trade-distorting subsidies provided to their agricultural sector."

He said that it must be recognised that for us agriculture is not just a business but a way of life and a major source of livelihood. Markets are good for those and they serve those who are part of market systems but have no meaning for those who do not have the skills or resources to participate in market processes.