Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, said today that it is too early to say that the economy is on a recovery mode, while acknowledging that the slowdown may have bottomed out.
However, if the government is able to expedite its decision making process he expected the GDP growth rate to go up by another 1.5% in the next one year.
Addressing the MindMine Summit, organised by the Hero Group, taking a cue from Prime Minister Manmohan Singh’s recent speech at CII AGM, Ahluwalia said that the government is likely to take several decisions over the next two months over bogged down projects through the Cabinet Committee on Investment, while sorting out the issue of coal linkages.
The Budget too has projected an economic growth rate of 6.5% in 2012-13.
Reflecting on public perception of inaction by the government, he said it stemmed from the fact that government functionaries have been reluctant to take decisions.
“The business of implementing policies is more complicated,” he added. He also stressed on the need to encourage participation of specialist professionals in running of the government.
Earlier in the day, addressing a session on Return of Regionalism, Omar Abdullah, Chief Minister, Jammu & Kashmir, stressed on recognising that India is a conglomerate of states, and that it has historically never been a homogenous society. “We need to recognise this and embrace our diversity,” he said.
On the situation in J&K, the chief minister said it was important to win the hearts of the people of the state. He reiterated his wish list for J&K – phase-wise revocation of Armed Forces (Special Power) Act and return of power projects to the state.