The nine percent growth target of the Indian economy during the 12th Five Year Plan period is achievable despite the global economic slowdown, a top official said on Saturday.
"Nine percent GDP growth is realistic during the 12th Five Year Plan period (2012-17). India’s share in global trade is only 1.5%. It insulates us from the global slowdown. We may sustain the economy because of less dependency on global economy," Mohammad Haleem Khan, secretary in the disinvestment department (in the finance ministry) said at a programme organised by the Indian Chamber of Commerce (ICC).
"We should have optimism to enter into the 12th Five Year Plan period despite of the current global economic scenario," he said.
Khan, however, said 9.5% GDP growth in the plan period seemed too optimistic.
Stating that the country’s saving rate should be 36% of the GDP to attain nine percent growth, he said: "Currently, the saving rate is 34%. Saving rate increase to 36% may not be difficult."
The greatest challenge in the plan period would be creating adequate employment opportunities for the young population, he added.