<p>Faced with sluggish economy, the Planning Commission may scale down the annual average growth rate target to 7 per cent from the envisaged 8 per cent in the 12th Plan (2012-17) in the mid-term review of the five-year policy.<br /><br /></p>.<p>The Commission, according to sources, has already started spadework on the mid-term review of the 12th Five Year Plan and in view of slow recovery, the economic growth target may be tweaked to 7 per cent.<br /><br />Plan panel Deputy Chairman Montek Singh Ahluwalia had asked for inputs from states for the mid-term review during the recent annual plan discussions with their Chief Ministers and other officials, a source said.<br /><br />The Commission is already half way through with the annual Plan outlay discussion and it has already approved such outlays for over 15 states so far.<br /><br />As per the CSO’s advance estimates, the economy would grow by 5 per cent in the 2012-13, the first year of 12th Five year Plan. Besides, the government is expecting economic growth of around 6.1 to 6.7 per cent this fiscal — the second year of the five year policy period.<br /><br />A senior official said, “With presumption of 5 per cent economic growth in 2012-13 and 6 per cent in 2013-14, Indian economy would have to grow by 9.7 per cent in the remaining three years 12th Plan. That seems not feasible.”</p>
<p>Faced with sluggish economy, the Planning Commission may scale down the annual average growth rate target to 7 per cent from the envisaged 8 per cent in the 12th Plan (2012-17) in the mid-term review of the five-year policy.<br /><br /></p>.<p>The Commission, according to sources, has already started spadework on the mid-term review of the 12th Five Year Plan and in view of slow recovery, the economic growth target may be tweaked to 7 per cent.<br /><br />Plan panel Deputy Chairman Montek Singh Ahluwalia had asked for inputs from states for the mid-term review during the recent annual plan discussions with their Chief Ministers and other officials, a source said.<br /><br />The Commission is already half way through with the annual Plan outlay discussion and it has already approved such outlays for over 15 states so far.<br /><br />As per the CSO’s advance estimates, the economy would grow by 5 per cent in the 2012-13, the first year of 12th Five year Plan. Besides, the government is expecting economic growth of around 6.1 to 6.7 per cent this fiscal — the second year of the five year policy period.<br /><br />A senior official said, “With presumption of 5 per cent economic growth in 2012-13 and 6 per cent in 2013-14, Indian economy would have to grow by 9.7 per cent in the remaining three years 12th Plan. That seems not feasible.”</p>