India will not be able to achieve the targeted 8 per cent annual average economic growth in the 12th Plan (2012-17) if private sector does not invest half of the envisaged $1 trillion dollar in infrastructure during the period, Planning Commission deputy chairman Montek Singh Ahluwalia said on Monday.
"This (8 per cent annual average economic growth rate in 12th Plan) will not happen if roughly 50 per cent (of investment target of $1 trillion) cannot come from private sector", he said addressing a FICCI conference in Delhi.
The Planning Commission has envisaged an investment of around $1 trillion in the 12th Five Year Plan with half of it coming from the private sector and set an average annual growth rate target of 8 per cent in the five year period.
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"We should be clear about it that there is no prospect or zero prospect of being able to significantly increase government contribution (to invest in infrastructure) simply because resources won't be there as the demand for resources for health and education is huge", Mr Ahluwalia explained.
According to Mr Ahluwalia, the economy has to grow at 9 per cent in the last few years of the Plan period to achieve the 8 per cent average growth target.
"If the intention is to put the economy on to a path which is outlined in the 12th Plan (2012-17) that you would have average of 8 per cent (growth rate) in the five year period, then you have to put the economy on 9 per cent growth rate in the last couple of years", he further said.
According to advance estimates by the Central Statistical Office (CSO), the economy would grow at 5 per cent 2012-13, the first year of the 12th Plan. The Prime Minister's Economic Advisory Council has pegged the economic growth at 6.4 per cent in the current fiscal year.
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