A 'business-as-usual' approach will not work if the Indian economy is to achieve its long-term 9% annual growth target, which is "very ambitious" in the backdrop of global uncertainties, Prime Minister Manmohan Singh said today.
In his address at the Golden Jubilee celebrations of the Indian Institute of Management (IIM) here, Singh said while the Indian economy has inherent economic strength, "difficult things would be needed" to reach the growth target.
The Full Planning Commission had set a goal for 9% annual economic expansion in the 12th Plan (2012-17) at its meeting last week.
He said India has been transformed into one of the fastest growing emerging markets in the world. "If we can continue to grow at this rate, we are well-positioned to be the country with the third-largest GDP in the world by 2025," he said.
But robust growth would not happen "automatically by simply proceeding on a business-as-usual basis. It may seem that a transition (from 8.2% in 11th Plan) to nine% growth is not difficult. However, it is in fact a very ambitious target given the current global economic situation," the Prime Minister said.
He said the global economy is facing uncertainties about industrialised countries and their implications for capital markets.
"Our own economy has also slowed down compared to last year and this year's growth may be around 8% or a little more, at best," he said.
Following the downgrade of the US credit rating, capital flows to emerging stock markets, including India, have been hit severely.