New Delhi: The economic growth can rebound to 7 percent in two years if corrective steps that are needed be taken, Planning Commission Deputy Chairman Montek Singh Ahluwalia said Tuesday.
While addressing at the 30th anniversary lecture of CUTS, Ahluwalia said, "If we take the corrective steps whatever necessary, we will get back to 7 percent (economic growth rate). I don't say this will happen this year but it can happen in two years period."
The economic growth slipped to decades' low of 5 percent in 2012-13, the first year of the 12th Five-Year Plan, due to poor performance of farm, manufacturing and mining sectors.
The growth rate in the fourth quarter ending March 31, 2013, stood at 4.8 percent showing a marginal improvement over 4.7 percent recorded in the third quarter of 2012-13.
The Planning Commission targets 8 percent annual average growth rate in the 12th Five-Year Plan period (2012-13).
The Commission has started the work on the mid-term review of the 12th Plan and has asked for feedback from the states during their ongoing annual plan discussions.
The sources say that the Commission may scale down the annual average growth rate target of 8 percent in the 12th Plan to 7 percent in view of slow recovery.
The Commission has earlier also scaled down the annual average growth rate of 9 percent envisaged in the 11th Plan to 8.1 percent in view of the global economic meltdown that began in 2008.
According to official estimates, India achieved an economic growth rate of around 8 percent during the 11th Five Year Plan period (2007-12).