India has ingredients for 8%-growth recipe: Montek

"India has averaged 7.5-percent growth in the last 10 years. It should have done that for 15 years but it is possible to bring it back to the average performance of the last decade. The target for 2013-14 is 6.5-7 percent and then accelerate further. India has all the requirements to return to 8 percent, even if it is later than expected," he told a gathering of students and academics at Oxford University.

"A little over 5 percent is a slowdown but the whole world is experiencing a slump in growth. It is a worry because we expect much more. But it is not as big a disaster as the media makes it out to be. Growth is important but it also has to be inclusive and sustainable," Ahluwalia said.

India's leading economic strategist also stressed that the pace of poverty reduction in the country was within the target set by the government. "It is clear that the government knows how to get growth going but there is a perception that we lag behind on inclusiveness. It is something the government takes very seriously and latest data indicates that the pace of poverty reduction has increased. The extreme view that the rich are getting richer and the poor, poorer, is nonsense. There is a lot of good news in terms of the pattern of growth being more inclusive," he said.

The former alumnus of the University of Oxford, who was invited by the Blavatnik School of Government to speak about 'India's Challenges Ahead', was in the UK on his way back from the G-20 Sherpas meeting in Moscow.

"The state of the world economy is a challenge. The focus of government policy is to re-assure foreign investors that India is wide open for business. India has the human resources in place and an expanding private sector. The only problem is the current account deficit. But the global financial system appears to be stabilising and the most important message is that India is a good bet for foreign investment and that message is getting across," he said.