Montek Singh Ahluwalia, planning commission deputy chairman, is sure that the country’s growth rate will soon return to its peak of 9%.
Speaking at the Indian Institute of Technology - Bombay (IIT-B) on Friday, he said, “This year we had set a target of 8.5% (for gross domestic product), certainly that will be exceeded based on first half numbers. We are hoping that next year, we can get back to 9%... the record till now is quite impressive.”
India’s economy had a 9 % growth annually for four years before the global financial crisis in 2008. It then slid to 6.7% and 7.4% in the past two years, said Ahluwalia.
This positive outlook has been expressed by several government agencies including the ministry of finance. The biggest economic challenges in the next decade, said Ahluwalia, would be to make growth inclusive, control volatile energy prices, and ensure efficient use of water and deal with rapid urbanisation.
When asked about the ongoing onion crisis, he said the price of onions in India has started to come down and won’t have an impact on the inflation outlook.
The price of onions in India jumped nearly 350 % early this month before easing off after the government stepped in to ban exports and scrap import duties, adding to worries about inflationary pressures.