Any global slowdown might trim India's fast rate of economic expansion in the near term but will not threaten the government's growth target for the next five years, a senior official said on Tuesday.
Montek Singh Ahluwalia, the deputy head of India's planning commission, said growth this year is likely at 8.5-9 percent, but would accelerate to 10 percent by the fiscal year 2011/12. "We have set a target of 9 percent growth (for 2007-2012) recognising that in the short term there may be a slowdown in the world economy. But I don't think it's going to impact the medium-term prospects of India," Ahluwalia told reporters.
"I think we will be on target." Analysts say high interest rates, a firm rupee, surging global oil prices and a possible slowdown in the US could curb India's exports and economic growth prospects. India's economy expanded 9.4 percent last fiscal but the central bank expects that to moderate to 8.5 percent in 2007/08.
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