Enthused by the estimated 8.1 per cent growth in 2003-04, Planning Commission on Friday said the targeted 8 per cent annual growth during the Tenth Plan period was now within the realms of possibility.
"Last year, GDP growth was over 8 per cent. Now, we are witnessing a buoyancy in the economy. And the sceptics, who raised serious doubts on 8 per cent growth, are beginning to accept that this country can develop in a good way," Planning Commission Deputy Chairman K C Pant said in New Delhi.
He said the economy has moved towards the target despite the dismal performance in 2002-03, when the country witnessed the decade's worst drought.
"The GDP growth should go up. Let's see what happens. Certainly, we will like to see 8 per cent growth in 2002-07," he said, expressing confidence that 8 per cent GDP growth was sustainable in the remaining years of the Tenth Plan ending in 2006-07.
Pant indicated that when the discussion starts for the next Five Year Plan, the plan panel would pitch for a higher growth target. "We must aspire for more," he said.
The plan panel, however, warned that India still have problems in some spheres and cited diversion of funds for current expenditure by some states.
The borrowed money for developmental (or Plan) expenditure was meant to create permanent assets but some states were using them for current expenditures, he said, adding this could push them into debt trap.