6.5-7% economic growth possible: Montek

Chandigarh: A 6.5-7 percent economic growth for India this fiscal is a possibility and would be a good performance going by the adverse global conditions, Planning Commission Deputy Chairman Montek Singh Ahluwalia said Tuesday.

".. With a bit of luck, we can meet the growth somewhere between 6.5-7 percent, which would be a very good performance in a situation where the whole global economy is badly hit," he said.

Ahluwalia was speaking during the Golden Jubilee celebrations of the Post Graduate Institute of Medical Education & Research (PGIMER) here.

He said initially the GDP growth was expected to be around 7-7.5 percent for current fiscal, when the budget was being finalised.

"But I think the growth rate has slowed down, not only in India, but everywhere. I don’t expect that kind of growth this year", Ahluwalia said.

On monsoon, he said: "It is true that the monsoon is weak so far..Delay in monsoon does not by itself mean that it will not recover. A lot depends on what happens in the next three months, I would not reach any adverse conclusion from what you have seen so far".

The cumulative rainfall in the month of June had been about 30 percent lower than normal.

Even global financial services major, Citigroup, has expressed fear that Indian economy could see a slower growth at 5.6-6 percent during the current fiscal if monsoon remains poor.

Ahluwalia also said there was a dire need to increase government spending on health care.

PTI