Higher GDP growth needed to reduce poverty faster: Ahluwalia
01 Dec 2012
India's economy should grow at a faster pace than the 5.3 per cent reported in the second quarter of the current financial year if the country is to reduce the number of poor any soon, Planning Commission deputy chairman Montek Singh Ahluwalia said today.
He said poverty reduction would be slower if the economy is not brought back on high growth track.
"If we don't bring the GDP growth back up, the rate of poverty reduction will go down," Ahluwalia said during panel discussion in New Delhi.
India's economy grew at a mere 5.3 per cent in the second quarter of this financial year (July-September) compared to 6.7 per cent in the year-ago period, making it likely that this will be its worst year in a decade.
Data released by the Central Statistics Office (CSO) on Friday showed the GDP growth was even below the 5.5 per cent posted for the three months ending in June but equal to that in the quarter ending March, strengthening the case for a cut in policy rates. However, indications are that the Reserve Bank of India is in no mood to oblige, considering the stubborn inflation.
Growth was dragged down by a sluggish farm sector, which grew at just 1.2 per cent, and very poor growth in industrial output at just 0.8 per cent.
