Planning Commission will stick to 9% GDP growth target in 12th Plan

Discussion in 'Economy & Infrastructure' started by Yusuf, Jun 21, 2012.

  1. Yusuf

    Yusuf GUARDIAN Administrator

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    NEW DELHI: Unfazed by sluggish economic growth and persistent global slowdown, the Planning Commission will stick to the 9 per cent growth target for 12th Five-Year Plan (2012-17), an official said. "The Commission will not move any proposal to revise the annual average growth target for 12th Plan when it would present the voluminous five-year long policy document before the National Development Council (NDC) for approval later in the year," a senior Planning Commission official said.

    Dismissing speculation that the Commission may scale down the growth target for the 12th Plan in view of prevailing economic slowdown, he said, it would aim at high target. "The achievable economic growth in the 12th Plan is 7.8 to 8 per cent. But the Commission suggested to fix the growth target for 12th Plan at 9 per cent which was later approved by the NDC," he added. Moreover, he said, "the growth targets are always kept higher than achievable numbers.

    The Commission had set an economic growth target of 9 per cent in 11th Plan (2007-12) despite knowing that 8.2 per cent was feasible." After the government released the nine-year low dismal economic growth number of 6.5 per cent for 2011-12 and poor industrial growth data for April at 0.1 per cent, speculations were rife that the Commission may downsize its target for the current five year Plan. Several economists have expressed concern over the feasibility of 9 per cent growth target in 12th Plan in view of the January-March economic growth number which stood at nine-year low of 5.3 per cent and stagnant industrial output in April. The Commission has set a target of 9 per cent average annual growth target in its Approach to the 12th Plan which was approved by the NDC headed by Prime Minister Manmohan Singh after taking all chief ministers and cabinet ministers on board in October last year

    http://m.timesofindia.com/PDATOI/articleshow/14320680.cms
     
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  3. Mad Indian

    Mad Indian Proud Bigot Veteran Member Senior Member

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    From the article:frusty:
     
  4. Tianshan

    Tianshan Regular Member

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    is that realistic, when china's growth "target" is 7.5%?
     
  5. Yusuf

    Yusuf GUARDIAN Administrator

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    It is. China will not forever be the fastest growing economy.
     
  6. Tianshan

    Tianshan Regular Member

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    i have heard this same line for many, many years now.

    i wish you luck that this time might be different, though you will have to fight other developing countries for that too.
     
    Mad Indian likes this.

  7. That is weird ...Obviously different Newspapers lead you to believe very different things about the same organisation ...

    from what i have been reading in Indian Express Planning Commission is
    looking at downgrading its growth
    projections....which i think is a much more pragmatic and realistic approach ....
    After all its been just 6.5 last fiscal year ...and what with Eurozone crisis
    and no new expected reform likely ..given that 2012-2013 is penultimate Pre election year ....

    It'll make more sense to set more achievable targets ....

    wildly optimistic projections Ala 'Sir' Zaid Hamid will only hurt Planning Commission's Credibility....

    just my two cents

    Plan panel takes cue from S&P, Fitch - Indian Express
    Now, Plan panel looks to downgrade GDP outlook - Indian Express
    PlanCom eyes GDP outlook downgrade
     
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  8. Ray

    Ray The Chairman Defence Professionals Moderator

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    They should just shut up!
     
  9. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    China is slowing down because CCP is rolling back spending on construction in order to tackle inflation. If China goes back to spending on construction then real growth will be 10%+ again, but it will be completely unsustainable.

    India is planning to increase expenditure instead.

    I don't know what other developing economies like Brazil or Russia will do, but India's growth will be higher than China due to these reasons. Once market sentiment improves, we will go back to our steady pace.
     
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  10. Mad Indian

    Mad Indian Proud Bigot Veteran Member Senior Member

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    We do talk, or rather shout a lot, as Indians. Saying stuff which we can never do.

    I dont see any reforms, any reduction in wasteful spending coming up soon nor is there any indication that the governance is improving, but rather I see the governance deteriorating. Rather there is going to be a slew of increased stupid wasteful spendings soon, as the election time is on the clock. How exactly are we gonna achieve that again? I think we would be lucky to have a growth of 6-7 %.

    Anyway, from the same article
     
  11. Tianshan

    Tianshan Regular Member

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    our inflation rate is 3%.
     
  12. Yusuf

    Yusuf GUARDIAN Administrator

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    Actually we have to bother about our own growth and make policies towards that. We are not in any fights for numbers against anyone. China grows at 7.5 or 15, I will be happy if india grows at 9-10.
     
  13. Sakal Gharelu Ustad

    Sakal Gharelu Ustad Detests Jholawalas Moderator

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    PC just copies and pastes stuff from old plans, so the figure is directly taken from 11th plan.

    It works like--"Ohh, 11th plan had 9%, we cannot have a target less than 9% this year".
     
  14. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    China goes into recession and it is the envy of the world. :rofl:
     
  15. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    Before the cut in expenditure, inflation in China was at 7%. The result of low inflation today is because of a recession.

    Our market sentiment is down today because of RBIs policies, where they openly said they don't care about weakening Rupee. Businessmen are hoarding Dollars and Gold because of the negative sentiment. That's a major reason why our exchange rate is so lopsided.
     
  16. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    Yeah. PC is just talking crap. Maybe they are just trying to recover lost confidence in the economy.
     

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