Singh says India can return to high growth

NEW DELHI (AP) — Prime Minister Manmohan Singh appealed to Indian business leaders Wednesday to help return the country to a path of high economic growth, while promising in return to cut the red tape hampering investment.

Just a few years ago, India was seen as a rising economic power approaching 10 percent growth but that rate has drastically fallen in recent years. Growth was 5.5 percent in the last quarter.

Singh told a meeting of top business leaders that such growth was a disappointment but said he was optimistic the economy could be jumpstarted. He called for a revival of the investment climate and stressed that this could be done by removing the "many impediments affecting the implementation of infrastructure projects."

"There are many projects that have been stuck, either for want of regulatory clearances or, in the case of power projects, because of fuel supply problems," Singh said.

Singh's speech was viewed as an attempt to woo Indian industry ahead of 2014 elections after they complained about the slow pace of economic reforms in recent years.

He acknowledged that government decision-making had slowed down and said often this was on account of hesitation on the part of officials to make critical decisions.

He said the government would help by easing regulations and granting faster clearances.

Singh said in the coming months his government would act to remove hurdles to investment and boost basic infrastructure such as ensuring power supplies and roads.

Steps taken by the government, including liberalization of foreign investment in retail, aviation, broadcasting and insurance, should help return the economy to a higher growth trajectory, Singh said.

He also appealed to foreign investors to come to India.

"We have given clear signals that we welcome foreign investment, which has a critical role in bringing in modern technology and globalizing our economy," Singh said.

Just as Indian companies were heading out to invest abroad, "we must welcome foreign investors coming to India, and using India as a part of their global supply chain," he said.

He said the government was reviewing the country's foreign direct investment policy to see what more could be done in the coming months.