10% growth not achievable: Plan panel to tell PM
The Planning Commission will be telling Prime Minister Manmohan Singh on Thursday that achieving the economic growth target of 10 % in the 12th plan will not be possible. Instead, the government should aim at a target of 9-9.5%.business Updated: Apr 19, 2011 23:37 IST
The Planning Commission will be telling Prime Minister Manmohan Singh on Thursday that achieving the economic growth target of 10 % in the 12th plan will not be possible. Instead, the government should aim at a target of 9-9.5%.
“We want to present the Prime Minister a picture which is achievable,” MoS for planning Ashwini Kumar said, after an internal plan panel meeting.
There were a lot of differences among the plan panel members on what should be the India’s target for the 12th plan.
Some members were of the view that the government should not aim at more than 8 to 8.5 % if the inflation has to be kept under control. “Targeting growth rate of more than 9 % will mean high inflation in double digits,” a member, who was not willing to be quoted said.
There was a dominant view that the resource generation because of high economic growth can be pumped into agriculture sector to improve productivity to tame inflation.
With it, the panel decided that despite the global economy still being sluggish the government will aim at an agriculture growth target of atleast 4% growth during the next plan period. And for manufacturing sector the growth target set was 11-12%.
Aiming for 4% agriculture growth will not be possible ample focus on water management and technological innovation to enhance food production in the country.
“We have to reduce the dependency on import to check inflation which is a major challenge,” Kumar said.
The panel will also tell the Prime Minister that achieving the high growth target will not be possible without infusing higher private investment to push infrastructure sector, a key to India’s high growth.
India had failed to achieve the target of 35% private investment in the 11th plan.