The Planning Commission said that India will not be able to achieve USD 1 trillion target for investment in the infrastructure sector during the 12th Plan (2012-17) in view of lower economic growth prospects.

Planning Commission deputy chairman Montek Singh Ahluwalia said that “The earlier figure was based on nine per cent growth target and if the growth target is less, it (investment target) does not have to be the same number.”

He said that “Obviously, if the five year perspective is lower than nine per cent then investment requirement would also be lower. I don't think that USD 1 trillion should be seen as a sacrosanct figure. I don't regard the USD 1 trillion figure as some kind of figure written on stone.”

Mr Ahluwalia said that “The figure was given two years ago when the rupee-dollar rate was Rs 44. So we are calculating, what is needed in rupee. So the dollar equivalent of that is bound to change.”

The Commission had set the USD 1 trillion target with an assumption that the economy will grow at the rate of nine per cent during the 12th Plan period.

The Commission had stated in its Approach to the Plan that “The cumulative investment in infrastructure in the 12th Plan is targeted at around USD 1 trillion. Nearly half of this investment will be channelised into construction projects.”

Source - PTI

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