For the first time since nine year, the GDP growth of the country has gone this low, but there could be more trouble if the eurozone crisis is not rapidly contained and financial stability in Europe restored.
The above statement was said by Deputy Chairman of the Planning Commission Montek Singh Ahluwalia.
Just before the G20 Summit being attended by the Prime Minister of India, Manmohan Singh along with other world leaders, Mr. Ahluwalia said India will be “lucky” if it can achieve around 7 per cent growth rate this fiscal.
India’s economic growth rate fell to 5.3% during the fourth quarter of 2011-12.
Mr. Ahluwalia said in his address, “The general assessment at the ongoing deliberations is that the global economy is “extremely weak” and it could sow the seeds for a second financial crisis in four years if the eurozone crisis is not handled effectively.”
He said, “We have not reached a situation where there is a sudden outflow of funds. We don’t need any support from IMF. We are not looking for anything like that.”
“We will be lucky to have 61/2 per cent to 7 per cent growth which is lower than the long-term target,” he added.
According to him, “We are fortunate that we are not in a position that we will be looking at any kind of emergency assistance. We are not posing to G20 any specific thing that can be done for India. We are basically saying that most important thing that G20 can do for India is to put in place a credible assurance for global financial security.”