10th Plan growth to be less than 8%, says Montek

The Planning Commission today said the country would fall short of achieving the targeted growth rate of 8 per cent during the 10th Plan period due to a slowdown in the manufacturing sector.

Addressing the Economic Editors Conference, Planning Commission Deputy Chairman Montek Singh Ahluwalia said the country would finish the 10th Plan with an average growth of 7.2 per cent. The 10th Plan period ends in March 2007.

Singh said the 7.2 per cent growth was the highest growth rate witnessed by the country during any Plan. "Growth is taking place in a much more open world and the industry is also looking very confident," he said.

He said growth in the manufacturing sector during 2002-07 as a whole would not be satisfactory as the sector had not grown rate more than 7 per cent on an average.

He, however, asserted that the targeted 9 per cent economic growth for the 11th Plan was achievable.

On the areas of concern, he mentioned the agriculture and power sectors. "Power is the area I am most concerned about, as it is the most difficult area," he said.

He said the 11th Plan would focus a lot on recovering momentum in agriculture. The 11th Plan would target an agricultural growth rate of 4 per cent from less than 2 per cent at present.

Ahluwalia stressed expansion irrigation projects in dryland rainfed areas which had seen little improvement.

"Through efficient use of water, agriculture can be encouraged in dryland areas," he reasoned.