Montek says achieving average 8% annual growth in 12th Plan difficult

New Delhi: Planning Commission Deputy Chairman Montek Singh Ahluwalia today said that achieving 8 percent annual average economic growth in the 12th Plan looks a bit difficult.

“I am hoping that some of the financial constraints will ease out over the years. In next five years, it is doable if we do certain things and as quickly as it should be done. Ifthey can’t be done, it would be 5.5 percent,” he said at a function here.

[caption id=“attachment_1160725” align=“alignleft” width=“380”]  Image courtesy PIB[/caption]

In the 12th Plan for the first time, upper-end performance was going to be around 8 percent average in a year but since then global economy has done much worse.

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“So, today 8 percent is bit on the high side. The possibility for next five years I feel is 7.5 percent which is not impossible,” Ahluwalia said.

The Commission has set a target of 8 percent annual average economic growth during the 12th Five Year Plan (2012-17). It had set an ambitious target of annual economic growth of 9 percent in the 11th Plan (2007-12) but around 8 percent growth was achieved.

India is facing persistent sluggishness in the economy.

The Gross Domestic Product (GDP) of the country grew at a decade-low rate of 5 percent in the previous fiscal.

In the current financial year, the first quarter growth was 4.4 percent. It was slightly better at 4.8 percent in the second quarter ended September.

According to Ahluwalia, a lot of work needs to be done in the infrastructure sector.

Regarding the power sector, he said that the government is working on resolving regulatory hurdles, among other issues.

PTI