Private investment of 500 bn must for 8 growth in 12th Plan

We should be clear about it that there is no prospect or zero prospect of being able to significantly increase government contribution to invest in infrastructure simply because resources wont be there as the demand for resources for health and education is huge, Ahluwalia explained.

According to Ahluwalia,the economy has to grow at 9 per cent in the last few years of the Plan period to achieve the 8 per cent average growth target.

If the intention is to put the economy on to a path which is outlined in the 12th Plan 2012-17 that you would have average of 8 per cent growth rate in the five year period,then you have to put the economy on 9 per cent growth rate in the last couple of years, he added.

According to CSOs advance estimates,economy would grow at 5 per cent in 2012-13,the first year of the 12th Plan. The Prime Ministers Economic Advisory Council has pegged the economic growth at 6.4 per cent in the current fiscal.