India won’t meet $1 trillion infra target: Montek

The Planning Commission said India will not be able to achieve $1 trillion target for investment in the infrastructure sector during the 12th Plan in view of lower conomic growth prospects

Written by Press Trust Of India | New Delhi | Published: July 17, 2012 2:34:58 am

The Planning Commission on Monday said India will not be able to achieve $1 trillion target for investment in the infrastructure sector during the 12th Plan (2012-17) in view of lower economic growth prospects.

“The earlier figure was based on the 9 per cent growth target and if the growth target is less,it (investment target) does not have to be same number,” Planning Commission Commission Deputy Chairman Montek Singh Ahluwalia said when asked about trimming of the infrastructure investment target.

“Obviously,if the five year perspective is lower than 9 per cent then investment requirement would also be lower. I don’t think that $1 trillion should be seen as sacrosanct figure. I don’t regard the $1 trillion figure as some kind of figure written in stone,” he said.

“The figure was given two years ago when the rupee-dollar exchange rate was Rs 44. So we are calculating,what is needed in rupees. So the dollar equivalent of that is bound to change,” Ahluwalia said.

The paper was approved by the country’s apex decision making body,the National Development Council (NDC) last year.

About the growth prospects,Ahluwalia said,“Given the situation around the world and our own domestic current growth prospects,I think achieving 9 per cent for five year average,is just not going to be feasible.”

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