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

Plan panel deputy chairman Montek Singh Ahluwalia said here.

Written by PTI | New Delhi | Published: April 30, 2013 2:54:32 am

India will not be able to achieve the targetted 8 per cent annual average economic growth in 12th Plan (2012-17) if private sector does not invest half of the envisaged $1 trillion in infrastructure during the period, Plan panel deputy chairman Montek Singh Ahluwalia said here today.

“This (8 per cent annual average economic growth rate in 12th Plan) will not happen if roughly 50 per cent (of investment target of $1 trillion) can’t come from private sector,” he said addressing a Ficci conference here.

“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 won’t 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 CSO’s advance estimates,economy would grow at 5 per cent in 2012-13,the first year of the 12th Plan. The Prime Minister’s Economic Advisory Council has pegged the economic growth at 6.4 per cent in the current fiscal.

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