Economy to grow at 8%, poverty to fall by 10%: Montek | business | Hindustan Times
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Economy to grow at 8%, poverty to fall by 10%: Montek

business Updated: Jul 06, 2012 19:20 IST
HT Correspondent

Plan panel deputy chairperson Montek Singh Ahluwalia on Friday ruled out achieving average 9% target and said even 8% growth will require a "major effort".

"It is not possible to think of an average of 9%. I think somewhere between 8 and 8.5% is feasible... When I say feasible that will require major effort. If you don't do that there is not God given right to grow at 8%," he said on the sidelines of a conference of state planning boards and departments in New Delhi.

He, however, ruled out achieving average 9% target during the plan period as estimated earlier.

The Planning Commission projected poverty reduction by 10% at the end of 12th plan (2017).

The new economic growth target would be discussed at the National Development Council meeting slated for September and Ahluwalia said the panel was on track to meet the deadline.

Another important component of the 12th plan document would be target for poverty reduction. The commission claimed they have been able to achieve the target of 10% reduction in the 11th plan, which ended in March 2012.

The Planning Commission is proposing a target of reducing poverty by 10% to less than 20% of the population by 2017 -- the terminal year of the 12th Five-Year Plan.

"I think 10% is a pretty good target which would mean 2% decline every year during the 12th Plan period," Ahluwalia said.

This comes after the panel drew plak for pegging poverty line at Rs. 28.65 per capita daily consumption in cities. It was Rs 22.42 in rural areas.

It had pegged the poverty ratio at 29.8% in 2009-10, down from 37.2% in 2004-05, based on the Tendulkar Committee methodology.