Economic growth could be slow, cautions PM

Says 9 pc growth by 2011-2012 possible with Planning Commission's strengths but not to be taken for granted

PTI | March 23, 2010



Prime Minister Manmohan Singh on Tuesday cautioned that return to high economic growth should not be taken for granted, as the global environment is likely to remain difficult in the year ahead.

"Our strengths can help us return to 9 per cent growth trajectory by 2011-12. However, as the mid-term appraisal rightly emphasises, restoration of high growth should not be taken for granted," he said, presiding over the meeting of the full Planning Commission here.

He said exports are likely to grow more slowly than they did before the crisis.

India had targeted USD 200 billion worth of exports in 2008-09, but the economic crisis that swept the world put paid to this hope and the country ended that fiscal year with USD 185 billion in exports.

This fiscal, it may end with exports worth USD 160-165 billion.

"We will need another source of demand to offset slow exports growth and that demand should ideally come from an expansion in investment in infrastructure, both in rural areas and the economy in general," he said.

Earlier in the day, Singh called for investments in infrastructure to double to USD one trillion.

Besides Planning Commission Deputy Chairman Montek Singh Ahluwalia and its members, the full Commission comprises key Cabinet Ministers including Finance Minister Pranab Mukherjee and Food and Agriculture Minister Sharad Pawar.

The meeting reviewed the targets achieved so far under the 11th Five Year Plan (2007-12).

In his presentation, Ahluwalia said the average annual growth rate of the 11th Plan would be 8.1 per cent against the target of nine per cent. The growth in the next Plan period could be 9-10 per cent, he said.
 

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