Greater mistrust amid people led to policy logjam:Maira

Increased mistrust among public in government and businesses has created policy logjam and if it is not fixed, the growth rate could slip to an average of 5 percent during the 12th Plan period, Planning Commission member Arun Maira has said.

Also Read: 'Economy to get back on 8% growth trajectory in 2 yrs'

"We found by listening to the citizens of the country that there is an increased mistrust in institution of both government as well as businesses in our country that has created this policy logjam.

"And we have projected that if we do not rapidly address it then the average growth rate in this 12th plan period...which we are projecting in the planning commission to be 8 percent, is more likely to average 5 percent if we do not fix the institutions right now," Maira said during an industry event here.

Maira said that the call for action is to work on building trust in the institutions.

He said if these problems are not fixed the country would not be able to create the kind of jobs that would be needed for the growing up people.

"...its going to come up to perhaps an average of 5-6 percent in this plan period (2012-17) which is not sufficient to create jobs that we need for all the people growing up who needs job in the country," Maira said.

India's economic growth slipped to a 10-year low of 5 percent in 2012-13 due to global economic slowdown as well as domestic factors.

During the first (April-June) quarter of the current financial year, economic growth slowed to 4.4 percent, compared with 5.4 percent in the corresponding period of the previous financial year.

However, Planning Commission Deputy Chairman Montek Singh Ahluwalia earlier this week said that the economy will get back on the targeted growth trajectory of 8 percent after two years.