Friday, 26 August 2011

Some highlights of India’s 12th Five year plan (2012-2017).


Mr. Montek Singh Ahluwalia
(Dy. Chairman Planning Commission, India)

Planning Commission Deputy Chairman Mr. Montek Singh Ahluwalia has opened the growth target of 9% to 9.5% for the coming 12th five year plan (2012-2017) of India. He also clarified that 10% average growth target for 12th plan period will not be feasible and it would be somewhere between 9%-9.5%. The major area of focus is going to on increasing agricultural productivity. In 11th plan, the agricultural growth was targeted at 4% on an average but it has been estimated to remain at only 3% level. Planning wants to make sure that agriculture should attain 4% average growth targeted in coming 12th five year plan. The approach paper of 12th plan lays stress on “faster more inclusive and sustainable growth”. The outline of the approach paper also puts special thrust on achieving more progress in health and education, besides improving the gender ratio.
Planning Commission has favoured further liberalisation of the foreign direct investment (FDI) policy and improvement of business regulations to raise the growth rate of gross domestic product to 9%-9.5% in the 12th five year plan (2012-17). Taking the note of weak manufacturing performance, Planning Commission emphasised the need to target a growth of 11%-12% in this sector in 12th plan period. Infrastructure constraints are the major concerns for the plan panel. Setting up of National Manufacturing investment zones and a better business regulatory framework to ensure a broad industrial base have been outlined by the plan panel. The plan panel has estimated country’s economic growth during 11th plan (2007-12) at 8.2& on an average which is lower than the original growth target of 9% set for the 11th plan period. However, the Planning Commission finds 8.2% growth as ‘remarkable’, considering the global economic downturn during 11th plan period. On micro, small and medium enterprises, the panel supported the idea of promoting clusters to enhance productivity in the sector. The Planning Commission also said that the government should target 4% growth in agriculture, during the 12th plan period. For this, farmers should be provided with better rural infrastructure, including storage and food processing facilities. The panel had also suggested expanding the Rashtriya Krishi Vikash Yojana to develop the farm sector.

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