The government has downsized its economic forecast for next five years from 9% to 8% in wake of global slowdown.
India's top advisory body the Planning Commission has projected average economic growth for the 12th five-year plan (2012-17) to be around 8%. In the approach paper for the 12th plan, PM Manmohan Singh had approved 9% economic growth target for the plan.
“It is difficult to achieve 9%,” minister of state of planning Ashwini Kumar said. “If the average growth is 8% it would be a big achievement for us".
The panel was forced to revise its economic growth in wake of global economic slowdown resulting in development countries like US bringing down its growth target. The 12th plan had initially projected growth of around 9.5 to 10% in the plan period. It was then lowered to 9 to 9.5% and then to 9%. Now, it stands at 8%.