Planning Commission is likely to cut the annual average economic growth rate target of 8 per cent for the 12th Plan (2012-17) to around 6 to 6.5 per cent in its mid-term review of the five year policy document.
"It would be difficult to achieve the 8 per cent 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 per cent," 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 per cent to 8.2 per cent for the 11th Five Year Plan period (2007-12). But only 8 per cent average annual economic growth was achieved in 11th Plan.
Reeling under the impact of slowdown, Indian economy grew by 5 per cent 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 per cent from 4.8 per cent the previous January-March quarter.