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Indian economy is unlikely to grow at 6.5 per cent in the current fiscal as there is a slowdown in emerging economies as well as the developed world, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said.
“It has been quite clear that the slowing down in the global economy, of all emerging markets, made it very unlikely that we would get to 6.5 per cent,” Ahluwalia told CNBC-TV18 in an interview.
The Government has projected 6.5 per cent economic growth for 2013-14 in the Budget.
Ahluwalia said the objective of the government should be to expect a turnaround in the economic growth from last year.
India’s economic growth had plunged to a decade low of 5 per cent in the 2012-13 fiscal amid global economic slowdown and domestic factors.
“Last year, we ended up with 5 per cent but the last quarter was below 5 per cent. We want to see the growth rate get back to something above 5 per cent.
“I know that many international observers have pitched the likely growth rate at somewhere around 5.7 per cent.
Personally, I think if we do 5.7 per cent, it is less than what we hoped, but it will clearly indicate that the economy is now on the rebound,” he said.
The Planning Commission had set an average annual economic growth rate of 8 per cent in the 12th Five-Year Plan (2012-17).
It has already started the process of reviewing the five-year policy document and it is likely to scale down the annual average growth rate target to 7 per cent in view of persistent sluggishness in the economy.
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