With struggling Indian economy amid global sluggishness, the Planning Commission of India has decided to lower the annual average economic growth rate to 8.2% in the 12th Five Year Plan (2012-17) from the earlier envisaged 9% and to achieve 9% GDP in the terminal year (2016-17) of the 12th Plan. The proposal is expected to be discussed at the meeting of the full Planning Commission chaired by the Prime Minister, on September 15.
Subject to the approval of full Planning Commission on growth target, Union Cabinet will closely examine the matter and would be brought to National Development Council (NDC) for final approval. The main factors for considering the trim in target are uncertain global environment and ailing performance of domestic manufacturing sector.
The economic growth rate in 2011-12, the terminal year of 11th Plan, dipped to nine-year low of 6.5%. While, India's economy in the April-June quarter grew by 5.5%, mainly on account of poor performance of manufacturing, mining and farm sectors.
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