Montek expects economic turnaround by October

Planning Commission deputy chairperson Montek Singh Ahluwalia today hoped turnaround in economy by October following a series of the steps the government would be taking soon.

Planning Commission deputy chairperson Montek Singh Ahluwalia on Tuesday hoped turnaround in economy by October following a series of the steps the government would be taking soon.

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“Give us time till October we will make a turnaround,” Ahluwalia, who is said to be close to Prime Minister Manmohan Singh, who is looking after the finance portfolio, said. He said the economic situation is being reviewed on daily basis and an action plan is being worked out. “You will see results in three months”.

What asked about his reaction to criticism of the PM in Time Magazine, the noted economist said the PM has already addressed several of these issues raised in the article. Time in its cover story titled "Underachiever" criticised the Prime Minister for slow pace of reforms and decision making.

"I think, most of the issues on which Time has criticized the government...are exactly the issues..the Prime Minister has addressed in his interview to Hindustan Times," Ahluwalia said.

HT had published Prime Minister’s exclusive interview on July 6 detailing the steps being taken by the government to review the economy.

Ahluwalia was hopeful of achieving 8-8.5 % GDP growth target in the 12th five year plan (2012-17) as against the earlier estimated nine percent. “I don’t think nine percent is feasible,” he said, before releasing a report on future scenarios with respect to the 12th plan.

For Ahluwalia, who had been visited by top industrial honchos in the last one year, strong fundamental of the Indian economy was a reason for expecting a quick revival. He also said the Indian domestic demand was growing and the banking sector was sound.