India’s 12th Plan GDP growth target pegged at 8.2 per cent

The Planning Commission has lowered its estimate of annual average economic growth rate for the 12th Plan period (2012-13 to 2017-18) to 8.2 per cent, from the 9.0 per cent projected earlier, in view of the current sluggish phase.

The plan panel is expected to propose an 8.2 per cent growth for the 12th Plan when the full Planning Commission meets next week.

In the Approach to the Twelfth Plan, the plan panel had said that the macro economic fundamentals of the country are strong, even as the terminal year of the 11th Plan saw the economy slipping to a low growth path.

The 11th Plan period was clouded by some slowdown in growth, continuing concern about inflation and a sudden increase in uncertainty about the global economy.

The 11th Plan (2007-08 to 2011-12) had aimed at achieving faster and more inclusive growth. Rapid GDP growth, targeted at 9.0 per cent per annum, was regarded necessary for two reasons - first, to generate the income and employment opportunities that were needed for improving living standards for the bulk of the population; and second, to generate the resources needed for financing social sector programmes, aimed at reducing poverty and enabling inclusiveness.

The economy has performed relatively well on the growth front, averaging 8.2 per cent in the first four years. Growth in 2011-12, the final year of the Plan was originally projected at around 9.0 per cent.