“Macroeconomic Prospects for the Twelfth Five Year Plan: An Assessment Using a CGE Model”

 

Citation: Ganesh-Kumar, A. and M. Panda. 2012. “Macroeconomic Prospects for the Twelfth Five Year Plan: An Assessment Using a CGE Model”. Report submitted to the Planning Commission, New Delhi.

 

Abstract: After attaining a high growth phase during 2003-04 to 2007-08 overlapping the 10th and 11th Plans, the Indian economy has slowed down in recent years primarily due to global economic crisis. The Approach Paper to the 12th Plan targets a GDP growth rate of 9.0-9.5% per annum during the Plan reflecting the general optimism among policy makers that the global economy will revive soon and the Indian economy will return to the high growth regime witnessed before the global crisis. In this paper, we attempt to carry out some exercises for the 12th Plan to examine the behavior of the macroeconomic variables in a consistent framework using a computable general equilibrium (CGE) model for India.