Montek expects growth rate to pick up in 2013-14

Planning Commission Deputy Chairman Montek Singh Ahluwalia today exuded confidence that the economic growth rate would improve in the current fiscal on the back of decisions to push big infrastructure sector projects.

"I thing the first thing to do is to come out of this 5% (low) growth (in 2012-13). I am pretty sure that the year 2013-14 will see a reversal," Ahluwalia said addressing at ADB's 46th Annual Meeting.

Expressing concerns over infrastructure projects which are stuck up for want of regulatory clearances, he said: "We have set up a mechanism to address these problems. That will have some effect in the coming months. We will see the results."

As regards the growth prospects, Ahluwalia said: "We will definitely push the economy to 7% growth rate. We need to go beyond that. I think in the longer term the growth potential for Indian economy is really somewhere between 8 and 9%."

On apprehensions of no further reforms in view of polls, he said: "The government is doing a lot of things and we are going to get higher growth rate (in coming years)."

Moreover, he said, the coalition governments have done well in the country.

"You have UPA-I and UPA-II which is a coalition government and quite frankly the average growth rate during these years is highest in any 9 years after independence," he said.

Alhuwalia also underlined the need for aligning energy prices with the global prices.

"Energy prices (in India) cannot be kept out of line with global energy prices because we are not self sufficient in energy. Indian companies are looking for energy assets abroad. I think as long as domestic energy prices remained controlled, investors will not be willing to invest in India", he added.