Achieving 8.2 per cent growth during the 12th Plan period (2012-17) will not be easy and a fresh approach to economic issues is needed to push growth, a Planning Commission study has said.
The National Development Council (NDC) has already scaled down the average growth target for the 12th Plan to 8 per cent from 8.2 per cent envisaged earlier. The average growth rate was 7.9 per cent in 11th Plan (2007-12).
"...achieving 8.2 per cent growth over the next five years will not be easy. Policy options where we only augment one determinant of growth at a time will not be enough, because the quantum of increase needed will be very high and at times
unreasonable," according to the study by Pranjul Bhandari, an economist in the Planning Commission.
NDC, the country's apex policy making body, approved the 8 per cent average growth in 12th Plan on December 27, while approving the 5-year plan document.
"Only a balanced growth path will be plausible and sustainable. New thinking, new efforts and new policies which can be implemented in a time-bound manner will be needed to augment each determinant of growth, in order to achieve the 12th Plan target over the next five years," the study has suggested.
It said the policies that led the growth spurt of mid-2000s may have already had its impact.
The country recorded 9-year low annual economic growth of 6.5 per cent in 2011-12. The economy has grown by 5.4 per cent in the first half of this fiscal (April-September).
Meanwhile, noted economist working with the World Bank, Kaushik Basu has also said that the economic growth in the current fiscal would be less than 6 per cent.