India long-term growth potential is 8-9 pc: Montek
London: Notwithstanding 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 per cent, Deputy Chairman of Planning Commission Montek Singh Ahluwalia has said.
"My view of India is that it is bullish. India`s long-term growth potential is 8 to 9 per cent. 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 here on Thursday evening.
He added, "India achieved a growth rate of 6.9 per cent last year. The question is whether India`s growth in 2012-13 will go up or not. Growth is taking place in Asia – China and India."
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.
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.
Thursday, the Reserve Bank of India said the country`s financial system is strong and sometimes these ratings are discounted by markets. RBI Deputy Governor K C Chakrabarty has said, "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."