Planning Commission lowers growth estimate for 12th Plan to 9 %
20 Aug 2011
Prime minister Manmohan Singh on Saturday indicated that the government will have to take difficult decisions to achieve nine per cent growth during the 12th five-year plan period (2012-17).
Addressing the full Planning Commission in Delhi, Singh emphasised on the need to focus on governance and implementation of flagship programmes aimed at promoting inclusive growth. "These programmes will continue in the 12th Plan, but as the approach paper rightly emphasises, we need to focus on issues of implementation and governance to improve their effectiveness."
The government had asked the commission to set up a target of 9.5 per cent growth during the 12th plan, but the body lowered the target to nine per cent. During the 11th plan, India's GDP is estimated to have grown at an annual clip of 8.2 per cent.
"The commission has pointed out that given the uncertainties in the global economy, and the challenges in the domestic economy, even a nine-per cent target is feasible only if we can take some difficult decisions," Singh added.
Referring to the farm sector, the prime minister said the government was aiming for a four per cent annual growth during the 2012-17 period. He felt there was need to step up the growth rate of the agriculture sector to avoid inflationary pressures and raise rural incomes.
"I am happy to inform members that although the approach paper talks of achieving three per cent agricultural growth in the 11th plan, the latest estimates suggest that this will be 3.3 per cent," Singh said.
