New Delhi: Amid fears of slowdown, the Planning Commission on Wednesday said India may not achieve over 8% economic growth in the current fiscal on account of likely fallout of global uncertainties on domestic economy.
“I don’t think so...We never felt that this year was going to be a big growth year,” Planning Commission deputy chairman Montek Singh Ahluwalia said when asked if India could achieve over 8% GDP growth during 2011-12.
India’s economic growth rate moderated to 7.7% in the first quarter of the 2011-12 compared to 8.8% the same period last fiscal. This was the lowest growth in the last six quarters.
The Planning Commission has earlier pegged the GDP growth for 2011-12 at 8-8.3%.
The government has projected a growth rate of 8.5%, while the Reserve Bank came out more conservative estimate of 8%.
The economy expanded by 8.5% in 2010-11.
Ahluwalia said what is more important than achieving 8% growth is “how we get out of the slowdown (and move to) higher growth path”.
On the positive side, the Planning Commission deputy chief said that the situation could improve with a pick up in the growth in the remaining part of the fiscal.
In the recent full Planning Commission meeting headed by Prime Minister Manmohan Singh, the panel has decided to aim for 9% annual average economic growth in the 12th Five Year Plan (2012-17).
The Commission had scaled down the annual average GDP growth target in the current Plan from 9% to 8.2% in 2010 in view of global economic downturn.