The new deputy chairman of the Planning Commission Montek Singh Ahluwalia on Saturday said hard economic decisions were necessary to achieve the 7-8 per cent growth rate targeted in the Common Minimum Programme.

"Progress is made only if you are willing to take hard decisions. I am confident that 7 to 8 per cent economic growth rate is achievable," Ahluwalia, who will be assuming charge on July 1, told reporters after his meeting with Planning Commission's member secretary Rajiv Ratna Shah.

Also Read Montek's appointment irks Left

Asked about the Left parties' demand to hike interest rate on Employees' Provident Fund and small savings instruments, he said, "I do not want to comment on demands of individuals or political parties. Our effort would be to translate the CMP of the government into action."

Asked whether Left parties would be a hindrance in taking forward the economic reforms programme, Ahluwalia said, "I am quite convinced that the CMP provides enough flexibility to meet the expectation of all and take forward the reforms process and implement the reforms with a human face. I have no difficulty in working in this atmosphere."

He said India's economic policy has been appreciated worldwide simply because it is framed after a broad consensus and this is reflected in the CMP.

Terming the task ahead as huge, Ahluwalia said Prime Minister Manmohan Singh has given a clear direction to the government on implementing the CMP, which has clearly outlined a broad policy in terms of plan programme and plan policy.

It would be the Planning Commission's task to translate the promises into action.

Commenting on the eight per cent economic growth achieved last year, Ahluwalia said, "The economic growth of 8% was only for the last year. In previous years, it hovered around 4-5% and the average for the last five years must be less than 6%."

The 7-8% growth rate outlined in the CMP is the 'correct range' and can be achieved, he said.