Montek says 9% average growth rate is not possible

New Delhi: In view of the deteriorating global economic situation over the last one year, achieving an average growth rate of 9 percent in the next five years is not possible, and may only be around 8-8.5 percent, Planning Commission Deputy Chairman Montek Singh Ahluwalia said today.

“It is not possible to think of an average of 9 percent (in 12th Plan, 2012-17). I think somewhere between 8 and 8.5 percent is feasible,” Ahluwalia said on the sidelines of a conference of state planning boards and departments.

[caption id=“attachment_369637” align=“alignleft” width=“380”]  Montel said that given the current global economic situation, 9 percent average growth was not feasible: Reuters[/caption]

Last year the National Development Council (NDC) gave the Planning Commission approval for a 9 percent annual average economic growth target under the Approach document for the 12th Plan.

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“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 of year of the 12th Plan (2012-13) is 6.5 to 7 per cent.”

He also indicated that he would share his view with other members of the Commission to choose a final number for the economic growth target in five years, to put before the country’s NDC for

its approval.

Montek also said that work on the 12th Plan document was on track and the voluminous document would be tabled before NDC headed by the Prime Minister for approval by September. “We have targeted the National Development Council (NDC) meeting in September. I think we are on track,” he said.

PTI