"The current slowdown is a matter of concern... We must guard against the mood of negativism that seems to have gripped the country," Singh said while addressing the National Development Council (NDC) meeting being attended by senior ministers and Chief Ministers.
NDC is considering the Approach Paper for the 12th Plan beginning next fiscal. Referring to the 9% growth target during the next, Plan, Singh said "it is relevant to ask whether this is feasible since the economy is currently slowing down".
However, he added, the slowdown should be seen as a short-term phenomenon reflecting highly unsettled conditions in the world economy. Growth rates, he added, were being revised downwards in all the countries for the current year.
"In setting target for the 12th Plan we must look at longer term potential, assuming that the immediate short-term problems will be overcome. I have absolutely no doubt that our country's longer term prospects are very good", he said. Indian economy, which recorded a growth rate of 8.5% in 2010-11, is expected to moderate to about8 per cent during the current fiscal. During the first quarter of the current fiscal the growth slipped to 7.7% from 8.8% a year ago.