'Our economy is going through two difficult years and the world economy will take a year more to recover from the global recession. The measures taken by the government during the past eight months are aimed at a stronger economic performance though we have a lot of work to do,' he said.

Clarifying that planning was not a mechanical exercise undertaken once and adhered to it for five years, Ahluwalia said a midterm review was essential for course correction.

'Global recession and drought are unforeseen events that disrupt growth momentum and the cyclical nature of many economic sectors. Midterm appraisal will allow us to redefine priorities and review policies.'

A weak monsoon and slowdown are feared to limit the growth rate of the gross domestic product (GDP) to less than seven percent this fiscal.

'Though drought will be a problem this year, we expect a strong rebound in the farm sector next year. But for the weak monsoon, the growth rate would certainly have been above seven percent this fiscal,' Ahluwalia said.

Even as a drought looms large, with loss of farm production, lower income for farmers and fall in demand for goods and services, he said food stocks were adequate.

'With five million tonnes buffer stock as strategic reserve, the government should be able to manage food grain shortage arising out of lower production and monsoon blues.'