NEW DELHI (NNN-PTI): Achieving eight per cent economic growth in the next five years will require a "major effort" and cannot be taken as a "God given right", Planning Commission Deputy Chairman Montek Singh Ahluwalia said.
Ruling out an average nine per cent economic expansion, as set out in the 12th Plan, he said lowering of ambitions for the period 2012-2017 will be internally discussed in the Planning Commission.
This is being done in view of a “sharp deterioration” in the world economy and its impact on India, Ahluwalia said.
“It is not possible to think of an average of 9 per cent. I think somewhere between 8 and 8.5 per cent is feasible… When I say feasible that will require major effort. If you don’t do that there is not God given right to grow at 8 per cent,” he said on the sidelines of a conference of State planning boards and departments here.
He said once the new numbers are discussed internally, they would be placed before the National Development Council (NDC) for inclusion in the Plan.
The NDC, presided over by the Prime Minister and comprising chief ministers, is expected to meet in September.
Ahluwalia said, “Given that the world economy deteriorated very sharply over the last year, the growth rate in the first of year of the Plan (2012-13) is likely to be 6.5 to 7 per cent.”
He said the work on the Plan document is on track and it would be tabled before NDC for approval by September.
“We have targetted the NDC meeting in September. I think we are on track,” he said. In the run-up to the NDC meeting, a meeting of the full Planning Commission presided over by Prime Minister Manmohan Singh is expected next month.
In a presentation before the state planning boards, Principal Advisor Pronab Sen said it would “difficult to grow faster than 8 per cent, without being more efficient in our use of resources”.
Pointing out that 12th Plan has started at a time when the conditions are unfavourable, Sen said that a new strategy would be needed to achieve higher growth.
The strategy would include optimal utilisation of natural resources, improving credit flow to small scale industries, agriculture and infrastructure sector.
Sen further said that in order to achieve 9 per cent growth rate the country would need to expand exports by 20 per cent per year and increase engagement with the world to attract more foreign investments.
Giving another scenario, he said the could opt for 8.5 per cent growth rate where it would have to maintain agriculture growth rate of 4 per cent and manufacturing at 10.5 per cent.
Besides, he said, the country would have to generate 25 million new work opportunities in the non-agriculture sector and increase the green cover by one million hectare every year.
Sen also asked to reduce the poverty ratio by 10 per cent during the five year period for 8.5 per cent economic expansion during 12th Plan. -NNN-PTI
0 comments:
Post a Comment