Bangalore, August 29: Drought may prevent India from achieving seven per cent growth this year but a “reasonable six to six-and-a-half per cent” economic expansion is more likely given the current scenario, Planning Commission Deputy Chairman Montek Singh Ahluwalia said today.
“Seven per cent growth rate this year is unlikely. People are talking about six and six-and-a-half per cent growth, which we agree and I think is reasonable,” Ahluwalia said speaking at a function organised by Federation of Karnataka Chambers of Commerce and Industry chamber here.
“The economy should be able to “rebounce” by 2010. It would be normal in the 12th Plan,” Ahluwalia said.
On tackling the drought situation in the country he said, India is better prepared to manage drought compared to any other period in the past. Food stock is 16 million tonnes higher than 2008 and 30 million tonnes higher than previous two years.
“We have been able to manage scarcity well,” he stated.
Though the drought is expected to impact farmer’s incomes, which would have a spillover impact, the government has in place mechanism to offset the degree of impact, including the National Rural Employment Guarantee scheme, Ahluwalia said.
Talking about the stimulus packages given by the government last year, he said, it has begun “to kick in only now”.
—Agencies