India’s economic growth is expected to turnaround in the next six months as the deceleration of the past several quarters has been arrested, helped by the steps taken by the government to revive the economy, said Montek Singh Ahluwalia, deputy chairman, Planning Commission.
“It is our hope that in the second half of the year, many of the measures taken by the government in the recent past to revive investor confidence, will lead to a turnaround setting in the second half,” Ahluwalia said. “In the first six months of the current year, GDP growth is around 5.5%... and I think the second half will be better. Somewhere around 6 (per cent) is a reasonable basis to start working from.”
He said the GDP growth would reach 9% by the end of the 12th Plan, which would give an average growth rate of 8.2% for the plan. “We can bring GDP growth to 9% by 12th Plan end."
Pointing to the pick up in the August Index of Industrial Production numbers as also in the recent Purchasing Managers’ Index) surveys, he said there are signals of up-tick.
He said that it is time for global credit rating agencies to take India off the negative watch list.