Growth rate of 9 per cent impossible in current environment: Montek
06 Jul 2012
In the backdrop of the deteriorating global economic conditions, India could not be expected to achieve an average growth rate of 9 per cent over the next five years, Montek Singh Ahluwalia, the deputy chairman of the Planning Commission said.
''It is not possible to think of an average of 9 per cent (in the 12th Five-Year Plan, 2012-17). I think somewhere between 8 and 8.5 per cent is feasible,'' Ahluwalia said on the sidelines of a conference of state planning boards and departments.
The Planning Commission, last year, got approval for the 9 per cent annual average economic growth target under the Approach document for the 12th Plan from the country's apex decision making body, the National Development Council (NDC), headed by the prime minister with all the chief ministers and cabinet ministers on board.
''When I say feasible...that will require major effort. If you don't do that, there is no God-given right to grow at 8 per cent,'' he added.
He further said, ''I think given that the world economy deteriorated very sharply over the last year...the growth rate in the first year of the 12th Plan (2012-13) is 6.5 to 7 per cent.''
He also indicated that he would soon share his view with other members of the commission to put a final number (economic growth target) before the country's NDC for its approval.
