Growth prospect of Indian Economy during 12^th Five Year Plan

India at the time of independence was left with crippling economy by British, which needed attention and well planned strategies to boom again in the global market. The Planning Commission was set up by a Resolution of the Government of India in March1950 in pursuance of declared objectives of the Government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community. The Planning Commission was charged with the responsibility of making assessment of all resources of the country, augmenting deficient resources, formulating plans for the most effective and balanced utilisation of resources and determining priorities. After the impressive economic growth during 11th five year plan, last one years of 12th five year plan has faced a global crisis. On 29th November, 2012, the Central Statistical Organization (CSO) came out with an estimate of 5.3 per cent growth for the Indian economy during the second quarter (July-September) of the current fiscal year against the 5.5 per cent growth during the first quarter (April-June). The quick estimate of 5.4 per cent growth of real gross domestic product (GDP) for the first half of the current fiscal year is not a very encouraging figure, though the stock market has taken it favourably. This is because the market might have perceived it as the lower turning point of the current slowdown. At this juncture, addressing questions about the prospects for the Indian economy in the short term, medium term, and long term is critical for individual business and collectively for the national developmental aspirations. We discuss the prospects for the growth of real GDP and overall inflation rate, and throw light on the likely position of the Indian economy among the largest economies in the world. The Indian economy during the stage of Twelfth Plan is characterised by strong macro fundamentals and good performance over the Eleventh Plan period, though clouded by some slowdown in growth in the current year with continuing concern about inflation and a sudden increase in uncertainty about the global economy. The objective of the Eleventh Plan was faster and inclusive growth and the initiatives taken in the Eleventh Plan period have resulted in substantial progress towards both objectives. Inevitably, there are some weaknesses that need to be addressed and new challenges that need to be faced. This paper specifically focuses on some sector where government has to face slowdown and no indication of economic growth. Growth Prospect of economy suffering from low industrial production as well as lesser demand in European market. Currently Govt. of India introduced various policy related to FDI but the pattern of implementation is not wining the faith of foreign investor. The forecasted GDP by planning commission is 8% for the financial year 2014–15, but "Actually, it is a very, very tough target to achieve, because the global economy for the coming year running is not in a good shape.