New Delhi: Although India slipped the 6.5 per cent annual growth target during 1997-2002, the Planning Commission is adhering to its projection of 8.0 per cent growth during 2002-07, which would further go up to 9.4 per cent thereafter.

The projections, which are part of the draft Tenth Plan document to be presented before the full Planning Commission chaired by the Prime Minister on October 5, also envisage that investment rate is pegged at 36.14 per cent after 2007 while domestic savings would escalate to 33 per cent which would push up GDP (Gross Domestic Product) growth to 9.4 per cent.

The higher growth projections are despite the fact that India failed to achieve the targeted 6.5 per cent annual growth during the Ninth Plan and ended up with 5.35 per cent.

The country achieved higher growth rates in the previous three plan periods -- 6.68 per cent during Eighth Plan (1992-97), 6.02 per cent in Seventh Plan (1985-90) and 5.54 per cent in Sixth Plan (1980-85).

The plan panel pitched for higher growth during the Tenth Plan and thereafter on the assumption that investment rate would go up to 28.41 per cent in Tenth Plan period and further to 36.14 per cent.

The savings rate is also assumed to go up to 26.84 per cent in 2002-07 and further to 33.01 per cent in the post Tenth Plan period.

According to the Commission's approach paper, India's current account deficit is estimated to increase to 3.13 per cent after 2007 from 1.57 per cent during Tenth Plan and 0.91 per cent in the Ninth Plan.

PTI