New Delhi: Planning Commission is proposing to lower annual average growth target for the 12th Five Year Plan (2012-17) to 8.2 percent from its earlier projection of 9 percent in view of uncertain global environment and sluggish performance of the manufacturing sector at home.
"The panel will propose the annual economic growth rate target of 8.2 percent for the 12th Plan. The issue will come up for discussion at the meeting of the full Planning Commission, to be presided over by Prime Minister on September 15," a source privy to the development said.
The average annual growth in the 11th Plan, which ended in March 2011, is estimated at around 8 percent, as against the target of 9 percent.
As per the fresh proposal prepared by the Commission in the background of fragile global economic conditions, the target would be to achieve 9 percent Gross Domestic Product (GDP) in 2016-17, the terminal year of the 12th Plan.
Sources said that proposal would be placed before the meeting of the full Planning Commission on September 15 and thereafter it would go to the Cabinet for vetting. Later, it would be placed before the National Development Council (NDC), the country's apex decision making body, for final approval.
The NDC is headed by the Prime Minister Manmohan Singh and its members include all chief ministers and Union Cabinet ministers. It gives final shape to the five-year policy document.
The Approach Paper to the 12th Plan, which was approved by the NDC last year, had envisaged 9 percent annual average growth rate during the five-year period. The target, however, is now being lowered in view of the global economic problems and its impact on India's growth.
Showing persistent sluggishness, India's economy grew 5.5 percent in the April-June quarter, mainly on account of poor performance of manufacturing, mining and farm sectors.
The gross domestic product (GDP) had expanded by 8 percent in the April-June quarter of 2011-12.
Besides, economic growth in the January-March quarter last fiscal was at nine-year low of 5.3 percent.
The economic growth rate in 2011-12, the terminal year of 11th Plan, slipped to nine-year low of 6.5 percent.
First Published: Thursday, September 6, 2012, 15:24