Saturday, August 20, 2011

India Names Growth Targets

Despite worsening global uncertainties and domestic inflationary pressures, India is aiming for 9% annual growth over a five-year period beginning April 1, 2012, Prime Minister Manmohan Singh said Saturday.

"It will be prudent to have a growth target, which would ensure achievement of the objective of sustained inclusive growth at a level which will also take into account the capabilities of the economy to achieve higher growth," Mr. Singh said, after a meeting of the planning commission to finalize details of the 12th five-year plan.

If the global economic situation improves, India's growth "can be 9.2% during the period," he added.

India sets five-year macroeconomic targets, and the planning commission's view is a part of planning for the next five-year period. The commission is chaired by the prime minister.

Asia's third-largest economy is poised to grow 8.2% this fiscal year through March 2012, despite the global instability created by the euro-zone debt problems and downgrade of the U.S. debt by Standard & Poor's.

Growth is likely to be threatened by persistent inflationary pressures, say government and economists.

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