India has long term growth potential of 8-9 percent says Planning Commission

PRLog (Press Release) - Apr. 29, 2012 - Despite global credit rating agency S&P's lowering India's outlook to 'negative', the country remains bullish and its long-term economic growth potential is 8-9 percent, Deputy Chairman of Planning Commission Montek Singh Ahluwalia opined, according to a PTI report. "My view of India is that it is bullish. India's long-term growth potential is 8 to 9%. In order to achieve this, we have to get our Macro-economic right," said Ahluwalia, briefing media at the third Clean Energy Ministerial Meeting which concluded in London last evening.

Stating that India had achieved a growth rate of 6.9 percent last year, the official said the question was whether India's growth in FY13 would go up or not. 'Growth is taking place in Asia - China and India', Ahluwalia noted.

Standard & Poor's on Wednesday downgraded India's credit outlook to 'negative' and warned of a downgrade if there is no improvement in the fiscal situation and political climate. Indian Finance Minister Pranab Mukherjee termed S&P's move as a 'wake-up call' and said the government would work towards achieving higher economic growth.

'The Finance Minister has already commented on the Standard and Poor's decision to change the outlook on India from stable to negative. I have nothing to add to it,' Ahluwalia said. Yesterday, the Reserve Bank of India said the country's financial system is strong and sometimes these ratings are discounted by markets.

RBI Deputy Governor KC Chakrabarty added: 'Indian financial system is strong. That is our internal assessment. That our financial stability report always gives. Again, RBI’s financial stability report will come in June. Then you can see what the position is'. For other automotive and related reports, visit automotivehorizon.sulekha.com.