The economic growth can rebound to 7 per cent in two years if corrective steps that are needed be taken, Planning Commission deputy chairman Montek Singh Ahluwalia said on Tuesday.
While addressing at the 30th anniversary lecture of CUTS, Mr Ahluwalia said, "If we take the corrective steps whatever necessary, we will get back to 7 per cent (economic growth rate). I don't say this will happen this year but it can happen in two years period."
The economic growth slipped to decades' low of 5 per cent in 2012-13, the first year of the 12th Five-Year Plan, due to poor performance of farm, manufacturing and mining sectors.
The growth rate in the fourth quarter ending March 31, 2013, stood at 4.8 per cent showing a marginal improvement over 4.7 per cent recorded in the third quarter of 2012-13.
The Planning Commission targets 8 per cent annual average growth rate in the 12th Five-Year Plan period (2012-13).
The commission has started the work on the mid-term review of the 12th Plan and has asked for feedback from the states during their ongoing annual plan discussions.
The commission may scale down the annual average growth rate target of 8 per cent in the 12th Plan to 7 per cent in view of slow recovery, according to sources.
The commission has earlier also scaled down the annual average growth rate of 9 per cent envisaged in the 11th Plan to 8.1 per cent in view of the global economic meltdown that began in 2008.
According to official estimates, India achieved an economic growth rate of around 8 per cent during the 11th Five Year Plan period (2007-12).