Plan panel pegs 12th Plan growth target lower at 8 per cent

The Planning Commission has pegged India's annual growth rate during the 12th Plan period at 8 per cent, down from the 8.2 per cent projected earlier. The plan panel today indicated that it would be more realistic in its approach at the National Development Council (NDC) meeting slated for tomorrow.

"Our objective is that we should be going in for a more optimistic scenario ... And probably if we reflect, what we now know instead of 8.2 per cent, it would be better to pitch it at 8 per cent'', Planning Commission deputy chairman Montek Singh Ahluwalia said today, adding, "I would raise that issue at the NDC."

The Indian economy is estimated to have grown at an average annual rate of 7.9 per cent in the 11th Plan while growth declined further to an estimated 5.7-5.9 per cent during the current fiscal - the first year of the 12th Plan. This is the lowest growth rate in the last decade.

Ahluwalia said the growth target is being modified in the light of the developments in the global and domestic economy since the approval of the approach paper by the NDC in October last year.

This is the second time the Planning Commission will be scaling down the 12th Plan growth projection. The approach paper to the 12th Plan had projected GDP growth rate of 9 per cent, which was lowered to 8.2 per cent in September 2012 in view of global economic worries and sluggish growth of the domestic economy.

The NDC headed by Prime Minister Manmohan Singh will consider all issue at its meeting tomorrow. The NDC has all state chief ministers as its members.