Not 10% definitely!

Mahendra Kumar Singh

The Planning Commission is likely to set a target of 9%-9.5% growth during the 12th Five Year Plan, which starts next April. The growth target, which is expected to be finalized at the full Plan panel meeting on this week (Thursday) to be chaired by Prime Minister Manmohan Singh, will come with a rider — agriculture and manufacturing sectors need to grow at 4% and 11%-12%, respectively.

Planners are cautious in setting an 'ambitious' growth target for the next plan since the global economy is still quite sluggish. "We want to present a picture before the PM, which is achievable," said minister of state for planning Ashwini Kumar, ahead of the meeting that will finalize the approach paper for the upcoming 12th Plan.

The thrust of the Plan will be on faster, more inclusive and sustainable development. Creation of more transparent environment will be another focus area since UPA-II has been hit by scams and scandals.

The challenge is to infuse higher private investment to push infrastructure sector—a key factor in clocking high growth.

On the other hand, the government will fund flagship schemes to make the growth more inclusive. Reforms are on the anvil to effectively implement social sector schemes. The plan panel is expected to focus on water management and technological innovation to enhance food production for sustaining current level of agricultural growth of 4% throughout the next plan period.

Courtesy: Times of India