New Delhi: Planning Commission is likely to cut the annual average economic growth rate target of 8 percent for the 12th Plan (2012-17) to around 6 to 6.5 percent in its mid-term review of the five year policy document.
"It would be difficult to achieve the 8 percent average economic growth in the 12th Plan period in view of slowdown. It is quite possible that Commission will cut the target substantially to around 6 percent," an official said.
As per the practice, the Commission comes out with a mid-term review of Plans during the third financial year of the policy period.
In its last mid-term review, the Commission had cut the annual average growth rate target of 9 percent to 8.2 percent for the 11th Five Year Plan period (2007-12). But only 8 percent average annual economic growth was achieved in 11th Plan.
Reeling under the impact of slowdown, Indian economy grew by 5 percent in 2012-13, the first year of the 12th Plan. The economic growth is expected to be flat this year. The first quarter (April-June) economic growth in this fiscal has slipped to 4.4 percent from 4.8 percent the previous January-March quarter.
According to experts, with a presumption that the economic growth remains 5 percent in first two years of the 12th Plan, the country has to maintain a rate of around 10 percent in remaining three financial years of policy period to achieve the targetted 8 percent which was not possible.
The Plan itself talks about the different growth scenarios. The document said that in absence of sufficient action to promote economy, the average growth would range from 6 top 6.5 percent.