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Prime Minister sets target of 10% growth in 12th plan

business Updated: Apr 17, 2011 23:06 IST
Chetan Chauhan
Chetan Chauhan
Hindustan Times
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Prime Minister Manmohan Singh has set an ambitious target of 10% economic growth for the country for the 12th plan, starting from the financial year 2012-13 and wants it to be discussed with key ministers on April 21.

"A full Planning Commission meeting having finance minister Pranab Mukerjee, home minister P Chidambaram and HRD minister Kapil Sibal as members will held on April 21 to discuss the growth target for the 12th plan," a top plan panel functionary said.

The approach paper for the next plan will also be discussed.

And, the key issue to be discussed there is whether India is ready to achieve 10% economic growth rate in the five years of the 12th plan. In the 11th plan, ending in 2011-12, India is expected to achieve a growth rate of 8% as against the target of 9%.

The plan panel has told the Prime Minister's Office that achieving 10% growth rate in the 12th plan is possible but resources need to be stretched.

It will also mean that the agriculture will have to grow at 4.5% as against 2.5% growth projected in the 11th plan and manufacturing at 12.4% as against 8.4% in the 11th plan.

For this to happen, the plan panel says the investment rate should increase to about 40% as against 34% in the 11 the plan.

"We are looking at 80% of this investment coming from the private sector which has been buoyant in the past few years," the panel functionary said.

The panel believes that most of the money will come through Public Private Partnership (PPP) mode foundation of which has been laid in the 11th plan. This year, the government is expected to enact pro-industry legislations such as the Companies Bill and new Relief and Rehabilitation Bill to foster growth rate.

If not 10%, the panel says, achieving 9% will not be difficult. It will require agriculture to grow at 4% and manufacturing at 9.8% as per the present trend.

"We expect a direction from the PM and key ministers on how to achieve 10% target," the official said.

While the 11th plan laid emphasis of education and skill development, the 12th is expected to stress on sustainable growth with focus on creating job opportunities, poverty eradication, health facilities to all and faster infrastructure development.