New Delhi: Concerned over high inflation, the Central government on Friday raised doubts over meeting the targeted 9 percent economic growth in the current fiscal.

Deputy Chairman of Planning Commission, Montek Singh Ahluwalia on Friday said here, “Along with the problem of inflation, growth in the agricultural and industrial sector is also likely to be affected. There is no chance for agriculture to grow at 6 percent this fiscal; it may probably grow at 3 percent."For the first time the Central government has made such kind of admission.


Earlier while tabling the budget, Finance Minister Pranab Mukherjee said, the economy will grow at a rate of 9 percent in 2011-2012 FY.


However, this comment was refuted by many financial institutions which gave an indication that a 9 percent economic growth may not be possible for India.

   
Few days back, International Monetary Fund (IMF) in its annual report also mentioned that the economic growth rate will be limited to 8.2 percent. Apart from IMF, two foreign banks had also expressed their concern citing 9 percent growth rate as unachievable and blamed uncontrolled inflation for this.


Ahluwalia confessed, “We may not hit 9 per cent (economic growth rate in 2011-12), 6 per cent is the rate of inflation which we should be willing to accept this fiscal."


Ahluwalia cited slow growth in agricultural and industrial sector as well as the rising inflation as the reason for not being able to touch the 9 percent mark in GDP growth.


(JPN/Bureau)