India's long-term growth potential is 8-9%: Montek | business | Hindustan Times
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India's long-term growth potential is 8-9%: Montek

business Updated: Apr 27, 2012 11:51 IST
global credit rating agency

Planning-Commission-deputy-chairman-Montek-Singh-Ahluwalia-addresses-a-press-conference-in-New-Delhi-AFP-Photo-Prakash-Singh

Notwithstanding global credit rating agency S&P's lowering the country's outlook to 'negative', the country remains bullish and its long-term economic growth potential is 8-9%, deputy chairman of planning commission Montek Singh Ahluwalia has said.

"My view of India is that it is bullish. India's long-term growth potential is 8 to 9%. In order to achieve this, we have to get our Macro-economic right," said Ahluwalia, briefing media at the third Clean Energy Ministerial Meeting which concluded here last evening.

He added, "India achieved a growth rate of 6.9% in 2011. The question is whether India's growth in 2012-13 will go up or not. Growth is taking place in Asia - China and India."

Standard & Poor's on Wednesday downgraded India's credit outlook to 'negative' and warned of a downgrade if there is no improvement in the fiscal situation and political climate.

Finance minister Pranab Mukherjee termed S&P's move as a "wake-up call" and said the government would work towards achieving higher economic growth.

"The finance minister has already commented on the Standard and Poor's decision to change the outlook on India from stable to negative. I have nothing to add to it," Ahluwalia said.

On Thursday, the Reserve Bank of India said the country's financial system is strong and sometimes these ratings are discounted by markets.

RBI deputy governor KC Chakrabarty has said, "Indian financial system is strong. That is our internal assessment. That our financial stability report always gives. Again, RBI’s financial stability report will come in June. Then you can see what the position is."