Lowering of growth estimate is normal, even IMF does: Montek
New Delhi: Unfazed by frequent lowering of growth projections by different official agencies, Planning Commission Deputy Chairman Montek Singh Ahluwalia Tuesday said even multilateral agencies like IMF do that.
"We are not the only one who is doing this (lowering growth projections) ...If you look at the global economy in the last three or four years, IMF had to scale down projections of growth. I think it has scaled down projections on six occasions," he said while speaking at an ICRIER function.
Recently, the Prime Minister's Economic Advisory Council (PMEAC) had scaled down the economic growth projection for the current fiscal to 5.3 percent from its earlier estimate of 6.4 percent.
RBI too had lowered its forecast from 5.7 percent to 5.5 percent for this year.
Several private sector organisations too frequently revise the growth estimates.
Planning Commission has set a target of 8 percent annual average economic growth rate for the 12th Five Year Plan (2012-17).
India's economic growth was at decade's low of 5 percent in the previous fiscal. During the April-June period of the current fiscal, Indian economy grew by by 4.4 percent.
Referring to the infrastructure sector, Ahluwalia asked the multilateral agencies like the World Bank to increase exposure to public-private partnership (PPP) projects in the country.
However, according to experts, the PPP projects in the country are held up because of delay in regulatory approvals and issues related to land acquisition.
India is expecting around 50 percent of the planned USD 1 trillion investment in infrastructure from the private sector.
Ahluwalia also said that India will implement Basel-III capital adequacy norms by 2018.