India can reasonably expect to grow at 8 per cent during the Twelfth Plan period and it would be a satisfactory one, considering the global economic scenario, according to C. Rangarajan, the chairman of the Economic Advisory Council to the Prime Minister.
Rangarajan, who was here to participate in the Indian Economic Association's annual conference, said in an interview that the economy would improve in the next two years and the growth rate may touch the level of eight per cent and it is likely to stay at the level for the remaining period of the Plan. "It also depends on the global economic situation. We cannot remain isolated or insulated from the global economic changes, but during the past few years we have been spared to an extent, as we do not depend so much on exports as China does. China's growth rate has suffered more in recent past, but then China also has a huge domestic market and therefore it can withstand the setback," he explained.
To a question when the global economic situation is likely to improve, he said he could not hazard a guess, "but the sooner it happens, the better for us." Referring to direct cash transfer scheme, he said initially it would be taken up only in old age pension schemes and would be extended to commodity-based transfers later. Aadhar cards would have to be issued to all citizens as it was the most efficient way of transferring a benefit given by the Government to the beneficiary, as there would be no intermediaries. The Government had given a clarification that the public distribution system would not be disturbed and foodgrains would be given through the PDS at subsidised rates, he added.
However, there should be an efficient banking system integrating the bank account with the Aadhar number and in remote areas where there are no bank branches the correspondent model would have to be adopted to make banking services available to the public.
sarma.rs@thehindu.co.in