Los Cabos (Mexico), June 18 (ANI): The Deputy Chief of Planning Commission, Montek Singh Ahluwalia, has said that if the Euro Zone crisis does not stabilise on time, it would have an impact on India's growth in the long run.
Speaking to mediapersons at the G20 summit here, Ahluwalia stated that India needed to build a contingency plan with an aim to ensure that it treaded on the path of economic growth.
"We are not likely to be vulnerable to sudden outflow type of situation. The real question is that if the global economy doesn't improve, then clearly it has an impact on how rapidly India can grow and we have to build that into our contingency plan," he said.
He added that India would be 'lucky' to witness about seven percent growth rate this year, as the domestic economic situation is currently far from stable.
"We will be lucky this year if we can be somewhere between 6.5-7 percent. I think that still remains a reasonable range to talk about, sure it is much below our long-term target but the world's growing much more slowly," he said.
Ahluwalia also explained that the general assessment of the economy is 'weak' at the moment.
He said that the country does not require any emergency assistance as of now and added that there was need to take adequate steps to effectively combat the global economic slowdown.
"We don't actually need any support, from the International Monetary Fund (IMF) or World Bank or anything like that. We haven't come here looking for those kinds of things. We have other countries that have supported our position. We have to wait and see in the declaration what comes out, this was a point that in a situation when globally the demand is weak for a variety of reasons, it makes sense that we should be supporting demand and we should be supporting the kind of demand that is consistent with generating growth in the developing countries," he said. (ANI)
