New Delhi: India’s annual economic growth rate could be lowered by up to half a percentage point if there is a global slowdown, Montek Singh Ahluwalia, deputy chairman of the Planning Commission, said on Friday, 18 January.
The commission last year projected an annual average growth rate of 9% for India between 2007/08 and 2011/12.
“On a basis of 9%, if there is a global slowdown, maximum impact on Indian economy could be half a percent,” Ahluwalia told reporters at a business conference.
On Thursday, 17 January, Palaniappan Chidambaram, finance minister, said any slowdown in the United States might lead to lower global output growth in 2008 and that would have some impact on India.
The Prime Minister’s economic panel has forecast a 8.9% growth for 2007/08, and this will moderate to 8.5% next year.