We should aim 8 percent average growth during 2012-17: Montek Singh Ahluwalia
Deputy Chairman of Planning Commission, Montek Singh Ahluwalia on Wednesday said that the country should aim for an 8 percent average economic growth over the next five years, during 2012 to 2017.
Ahluwalia said that the lowering of the growth target follows changes in the global and domestic economy since the approval of the Approach Paper by the NDC (National Development Council) in October last year.
"Our objective is that we should be going for the more optimistic scenario, which is scenario one, and probably if we reflect what we now know, instead of 8.2 percent, it would be better to pitch it at 8 percent. So, I will raise that issue in the NDC and let us see what reaction we get, said Ahluwalia.
Ahluwalia added that it is an ambitious growth rate, after initially estimating the growth rate as 9 percent in the Approach Paper.
"I would say that even 8 percent average, if you work it out based on 5.8 percent in the current year and maybe 7 or something for next year and a 5.8 percent average will actually mean well above 8 percent on average for subsequent periods and maybe going to 9 for the last two years, so that's quite ambitious," he said.
"If we are not able to do that and we only do it partially, partially doesn't mean almost do it, it means significant slippage. Then, we have said between 6 and 6.5 percent and if in a worst-case situation, which I don't anticipate at all to be likely is more that you stuck in a policy logjam," said Ahluwalia.
"Now, honestly, the reason we have mentioned that is that there was a lot of talk six months ago about policy logjam and we want the country to realise that you know policy logjam have implications," he added.
He also added that mounting uncertainties in the global economy have increased risks to country's economic growth.
The issue will put before the NDC to be considered tomorrow.