labels: economy - general, governance
PM reduces growth target after mid-term appraisal news
28 June 2005

New Delhi: At the National Development Council' appraisal of the Indian economy, conducted in the capital yesterday, prime minister Dr Manmohan Singh has scaled down the economic growth rate during the plan period to 7-8 per cent from 8 per cent projected earlier.

Addressing the inaugural day of the crucial two-day meeting of the NDC convened to approve the mid-term appraisal of the Tenth Five-year Plan, the Prime Minister stated, "We cannot achieve the original plan target of eight per cent growth. The mid-term appraisal shows that performance thus far is well below this target, averaging 6.5 per cent in the past three years. The UPA government has set a revised target of 7-8 per cent for the remaining two years of the Tenth Plan (2002-07)."

Singh pointed at the poor performance of agriculture, which had been growing by a mere 1.5 per cent over the past three years, as the root cause holding back the economic growth. Unfortunately, the performance of agriculture appears to have deteriorated and possibly would not exceed 1.5 per cent growth during the Tenth Plan," he added.

Singh said the cornerstone of the plan strategy was a reversal of the declining trend to achieve 4 per cent growth in the agricultural sector. But he lamented that this had not been achieved over the last three years.

The prime minister under the chief ministers to explore the possibilities of doubling farm output in the 10 years for which he suggested the constitution of an NDC sub-committee to undertake concrete action.

Regarding the lag in infrastructure, the PM referred to the vital need to overcome power shortages that is plaguing practically all states and creation of environment for attracting both public and private investment in the sector.

Last week, during his visit to Mumbai to deliver the 22nd Sir Purshottamdas Thakurdas Memorial Lecture, Dr Montek Singh Ahluwalia, deputy chairman, Planning Commission had said that agricultural growth in India had halved from 4 per cent since 1996 and that for the benefits of reforms to be accessible to larger sections, it was imperative to improve agricultural productivity and growth.

He said agriculture, infrastructure and the social sector would form the government's thrust for development during the Tenth plan

Outlining the positive aspects of the economy, at the NDC meet, Dr Ahluwalia said, "Inflation, which was a concern in mid-2004, is now under control, industrial growth had picked up recording 8.1 per cent growth, savings rate is high and fiscal deficit has been under checked."


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PM reduces growth target after mid-term appraisal