New Delhi: Planning commission on Tuesday said India can achieve 9% GDP growth rate despite weak global demand, as country’s economic expansion is not heavily dependent on exports.
“Our view is that on the supply side, we have the capacity to grow at 9%. Global demand is going to be weak...but we are not that export dependent,” said deputy chairman planning commission Montek Singh Ahluwalia while addressing Economic Editors’ Conference in New Delhi
His remarks comes a day after Prime Minister Manmohan Singh said that India could revert to 9% growth rate in 2011-12. Finance minister Pranab Mukherjee too said that the country could achieve 9% growth in short run.
“Even though the world would grow slowly in next two years...we can still grow at 9%. Our current account deficit would be about 3% of GDP this fiscal. But attracting long term capital would not be impossible,” Ahluwalia said.
“India’s growth is much less dependent on rapid growth of exports. The impact on us (due to slump in global) demand would be less,” he said.
However, Ahluwalia said, the country would have to garner funds for growth of infrastructure, which is a matter of concern.
“Lack of investment in infrastructure is critical concern in this country. We would improve investment in infrastructure”, he said adding, investment is needed in sectors like ports, road, railways and airports.
The government is aiming to double investment to one trillion dollar on infrastructure during the Twelfth Five Year Plan (2012-17), from about $500 billion in the current plan.