Indian economy unlikely to grow at 6.5% in FY14: Montek

Last Updated: Tuesday, July 16, 2013 - 16:55

New Delhi: Indian economy is unlikely to grow at 6.5 percent 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 percent," Ahluwalia told CNBC-TV18 in an interview.

The government has projected economic growth of about 6.5 percent 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 percent in the 2012-13 fiscal amid global economic slowdown and domestic factors.

"Last year, we ended up with 5 percent but the last quarter was below 5 percent. We want to see the growth rate get back to something above 5 percent.

"I know that many international observers have pitched the likely growth rate at somewhere around 5.7 percent. Personally, I think if we do 5.7 percent, 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 percent in the 12th Five Year Plan (2012-17).

The Commission has already started the process of reviewing the 5-year policy document and it is likely to scale down the annual average growth rate target to 7 percent in view of persistent sluggishness in the economy.

PTI

First Published: Tuesday, July 16, 2013 - 16:55

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