Thaindian News

New Delhi, March 23 (IANS) A meeting of the full Planning Commission conducted a mid-term review of the 11th Five Year Plan (2007-12) here Tuesday, and lowered India’s targeted growth of 9 percent per annum because of the two trying past years.
“The average rate of growth in the plan period could be a little over 8 percent,” said the appraisal document that was placed before the high-level meeting, chaired by Prime Minister Manmohan Singh, while assuring a return to high growth in the medium term.

“The economy would be well positioned for the transition to a growth rate higher than 9 percent in the 12th Plan period,” added the document, also calling for several course-correction measures in the remaining tenure of the plan.

Addressing the meeting, the prime minister said the past two years were particularly difficult for the Indian economy due to the impact of the sharp global slowdown, that was exacerbated by lower food production last year due to the failure of monsoon.

“Yet, we have been able to maintain a growth rate of 7 percent during the last two years,” the prime minister said, adding that the target now would be to move towards 10-percent expansion in the medium term.

“But restoration of high growth cannot be taken for granted,” he said, laying emphasis on infrastructure development with much greater participation by the private sector to spruce up the network of roads, ports, airports and energy.

“We can also expect a strong rebound in agricultural production if we can ensure that the various schemes supporting agricultural production, expanding agricultural credit and rural infrastructure are implemented,” he said.

“There is good change that agricultural growth will touch the 4 percent target.”

Finance Minister Pranab Mukherjee, Agriculture Minister Sharad Pawar, Road Transport and Highways Minister Kamal Nath, Power Minister Sushil Kumar Shinde and Planning Commission Deputy Chairman Montek Singh Ahluwalia were among those who attended the conference.

The appraisal document will now be discussed by the National Development Council (NDC) and fine-tuned, if necessary, before the federal and state governments start acting on its recommendations.

The council is the highest deliberative and decision-making forum on development issues that comprises the prime minister, chief ministers, lieutenant governors and members of the Planning Commission.

It gives a national character to planning, functions as an instrument of cooperative federalism and looks at policies on infrastructure, rural development, investment, fund mobilisation, labour, food security, agriculture, environment and regional balance.