New Delhi: India can achieve 9.5 percent average economic growth in the 12th Five Year Plan, provided steps are taken to push agriculture growth rate to 4.2 per cent and manufacturing to 11.5 per cent.
According to the growth scenarios given in the draft Approach Paper to the 12th Plan (2012-17), it is possible to achieve high economic growth on back of robust performance in the other sectors of the economy.
These projections were provided in the document which has recently been approved by the Full Planning Commission headed by the Prime Minister Manmohan Singh.
The Full Commission, however, has settled for 9 per cent economic growth, although Singh indicated that it is possible to raise the growth target to 9.2 per cent in the 12th Plan. "... we will be working on a growth rate of 9 per cent per annum, but we will also keep open the possibility of raising the growth rate, if the domestic and international situation improves, to 9.2 per cent," Singh had said after the full Commission meeting on Saturday.
However in order to achieve 9.5 per cent, the government will have to raise farm sector growth target to 4.2 per cent from estimated 3.3 per cent in the 11th Plan (2007-12). Although the Commission had set a target of 4 per cent growth in 10th Plan (2002-07) also, but country could achieve 2.3 per cent.
Similarly, the panel would have to raise the growth target of manufacturing to 11.5 in 12th Plan from estimated 8.3 per cent in the current Plan.
The other important areas include electricity, gas and water supply where Commission suggests that 9 per cent growth is required to achieve 9.5 per cent economic growth in next Plan.
Electricity, gas and water supply combined together are expected to register a growth rate of 6.4 per cent in current Plan which is lower than 6.8 per cent achieved in the 10th Plan.
First Published: Monday, August 22, 2011, 21:12