NEW DELHI, Dec 23: The Plan panel has warned that persistent policy logjam could pull down the annual average economic growth rate in the 12th Five Year Plan (2012-17) to 5-5.5 per cent, from 7.9 per cent recorded in the 11th Plan.
In case the government pursues well designed strategy, the annual average growth rate in the 5-year policy period could move up to 8.2 per cent, said the 12th Plan draft document which will be placed before the country’s apex policy making body National Development Council (NDC) on Thursday.
NDC, headed by the Prime Minister with all Chief Ministers and Union Cabinet Ministers on its board, is the final authority to approve a Five Year Plan.
According to the document, “insufficient action” on the part of government would restrict the annual average growth rate in 12th Plan to 6-6.5 per cent.
In the policy logjam scenario, one of the three scenarios suggested by the document, “the growth rate can drift down to 5-5.5 per cent”.
The document has made a case for “well designed strategy”, saying that only the first scenario with 8.2 per cent average growth rate in 12th Plan can meet the aspirations of the people of this country.
Although the document envisages 6.7 per cent growth rate in the current fiscal, it has been projected at 5.7-5.9 per cent in 2012-13 by the Finance Ministry.
The strategy for the full Plan would aim at raising agriculture output to 4 per cent and manufacturing sector growth to 10 per cent.
It also wants all the states to set up higher target of growth than what was achieved in the 11th Five Year Plan (2007-12). (PTI)
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