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9 per cent GDP growth rate possible, says Montek

Planning Commission today said India can achieve 9 per cent GDP growth rate despite weak global demand, as country's economic expansion is not heavily dependent on exports.

business Updated: Oct 26, 2010 20:41 IST

Planning Commission today said India can achieve 9 per cent GDP growth rate despite weak global demand, as country's economic expansion is not heavily dependent on exports.

"Our view is that on the supply side, we have the capacity to grow at 9 per cent. Global demand is going to be weak...but we are not that export dependent," said Deputy Chairman Planning Commission Montek Singh Ahluwalia while addressing Economic Editors' Conference here.

His remarks comes a day after Prime Minister Manmohan Singh said that India could revert to 9 per cent growth rate in 2011-12. Finance Minister Pranab Mukherjee too said that the country could achieve 9 per cent growth in short run.

"Even though the world would grow slowly in next two years...we can still grow at 9 per cent. Our current account deficit would be about 3 per cent of GDP this fiscal. But attracting long term capital would not be impossible," Ahluwalia said.

"India's growth is much less dependent on rapid growth of exports. The impact on us (due to slump in global) demand would be less," he said.

However, Ahluwalia said, the country would have to garner funds for growth of infrastructure, which is a matter of concern.

"Lack of investment in infrastructure is critical concern in this country. We would improve investment in infrastructure", he said adding, investment is needed in sectors like ports, road, railways and airports.

The government is aiming to double investment to USD one trillion on infrastructure during the Twelfth Five Year Plan (2012-17), from about USD 500 billion in the current plan.