Panel may downgrade growth to 7% for 12th plan

The Planning Commission may scale down the annual growth rate for the 12th five-year plan (2012-17) from 8% to 7% in its mid-term review of the plan. HT reports.

The Planning Commission may scale down the annual growth rate for the 12th five-year plan (2012-17) from 8% to 7% in its mid-term review of the plan.

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The commission has initiated the process to review the plan, which came into force from the current financial year, and is of the view that attaining the 8% annual growth rate for the plan would be difficult considering that growth is expected to remain below 6.5% for the first two financial years of the plan.

Planning Commission officials expected the country to achieve 7% growth rate considering that signs of revival of economy was emerging. Even Prime Minister Manmohan Singh, who heads the commission, has expressed hope of economic revival from this financial year.