Economic growth in 2013-14 is likely to be better than last year's 5 per cent, Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Monday. "We are hoping that in the current year the growth rate will be better than last year," Ahluwalia said at an event organised by Indian Private Equity ~~amp; Venture Capital Association.
India's growth rate slipped to a decade low of 5 per cent in 2012-13 due to global economic slowdown as well as domestic factors. By 2014, Ahluwalia said the euro zone will veer towards positive growth. "So from then onwards, we will see a normal growth process... so in that environment it will not be really difficult to see that we will be able to grow. "I mean at best 8 per cent, and if not that then the best is at something about 7 per cent. That is a long term projection and I don't think we can't grow at 8 per cent an year."
He also said there has been no change in official estimates of economic growth projection for 2013-14 so far. "When the Finance Minister presented the Budget, I guess he had factored it at 6.5 per cent. I don't think there is any official revision of that figure." He said domestic supply side problems are impacting India. To remove such hurdles, the government has formed the Cabinet Committee of Investment (CCI), he added.
He said: "We need to see one quarter that actually shows the turnaround. The first quarter figures (of GDP) are not available for this year." Ahluwalia said going forward India will begin to see the turnaround as the government has taken a number of steps recently to revive investment, including the setting up of CCI.
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