Planning Commission Deputy Chairman Montek Singh Ahluwalia today said that achieving 8 per cent annual average economic growth in the 12th plan looks a bit difficult.
"I am hoping that some of the financial constraints will ease out over the years. In next five years, it is doable if we do certain things and as quickly as it should be done. If they can't be done, it would be 5.5 per cent," he said at a function here.
In the 12th Plan for the first time, upper-end performance was going to be around 8 per cent average in a year but since then global economy has done much worse.
"So, today 8 per cent is bit on the high side. The possibility for next five years I feel is 7.5 per cent which is not impossible," Ahluwalia said.
The Commission has set a target of 8 per cent annual average economic growth during the 12th Five Year Plan (2012-17). It had set an ambitious target of annual economic growth of 9 per cent in the 11th Plan (2007-12) but around 8 per cent growth was achieved.
India is facing persistent sluggishness in the economy. The Gross Domestic Product (GDP) of the country grew at a decade-low rate of 5 per cent in the previous fiscal.
In the current financial year, the first quarter growth was 4.4 per cent. It was slightly better at 4.8 per cent in the second quarter ended September.
According to Ahluwalia, a lot of work needs to be done in the infrastructure sector.
Regarding the power sector, he said that the government is working on resolving regulatory hurdles, among other issues.
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