Prime Minister Manmohan Singh said in his Independence Day speech that restoring the growth rate to 9% is the greatest challenge faced by the country. The PM, in his annual address from the historic Red Fort in Delhi, said that he expected an improvement by the end of this year but the task was difficult owing to a weak monsoon and the global recession.

Earlier reports have stated that Indian economy is likely to grow at 6.5% – 7% this year, much lower than the 9% growth rate of the previous three years.

Monsoon rains in India have been 29% below average so far, which has raised concerns of lower agricultural output and inflation. According to analysts, a weak monsoon can pull down growth by as much as 2%.

The PM said that the target was to achieve 4% annual growth in agriculture and remained confident that it would be achieved in the next 5 years.

Related news articles:

1. China’s growth rate picks up, touches 8.9% in the last quarter
2. India expected to grow at more than 6% despite weak monsoon
3. World Bank upgrades Chinese growth prediction to 8.4 percent
4. Sensex lowers down – banks, auto low
5. Unemployment to stay high in the US, Europe until 2011