Montek happy with 6.9% GDP growth

Planning Commission Deputy Chairman Montek Singh Ahluwalia today said the Indian economy looked stronger than last year.

"I am delighted (with the 6.9 per cent growth). The Indian economy is looking stronger on all parameters," Ahluwalia said on the sidelines of a function organised to release the 'India Policy Forum', a journal brought out by the National Council of Applied Economic Research (NCAER) and the Brookings Institution, Washington D.C.

Suman Berry, NCAER director-general, said, "The Indian economy is showing resilience. With a lot of policy changes, 8 per cent growth should be possible."

India was benefiting from a buoyant world economy, he added. Players like Japan and European Union were recovering after a three-year slump and it could lead to a worldwide boom, Berry pointed out.

NCAER had pegged the GDP growth between 6.7 and 6.8 per cent. On oil prices, Berry said, a sluggish world economy could push up rates. Despite a rise in steel prices, real rates might come down because of the incentives for new capacity, he said.

"It is the possible long-term slowdown in agriculture that needs structured attention," Berry said. The agriculture sector is estimated to grow at a meagre 1.1 per cent.

The momentum of manufacturing was unaffected due to a strengthening rupee and a slight increase in interest rates. Manufacturing will continue to propel the economy with a 8.9 per cent growth in 2004-05.

"Sustainability in manufacturing should be targeted," he said.

Also present was Strobe Talbott, President of the Brookings Institution and Deputy Secretary of State in the Clinton administration.