New Delhi: India’s economy is likely to expand around 8% in the year to March 2009, but 9-10% growth in the medium term is “achievable”, the deputy chief of India’s planning panel said on Thursday.
“We are targeting 9% growth, getting up to 10%. It may look ambitious with the global economic slowdown. But in the medium term, it is achievable,” Montek Singh Ahluwalia told reporters.
India’s central bank expects growth in 2008/09 to slow to 8% from the 9.1% expansion notched in 2007/08.
Asked about the implications of the government’s decision to hike salaries of federal employees, Montek said: “I am sure we will be able to handle that.”