Plan panel puts reality check on 10% GDP target

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| These include addressing inadequacies in sectors like agriculture, services, manufacturing, human resource, and competitiveness in trade, it has said in the approach paper to the 11th Plan. |
| A major challenge is to reverse the deceleration in agricultural growth from 3.2 per cent, observed between 1980 and 1996-97, to an average of around 2 per cent, it has said. It feels that a second Green Revolution is urgently needed to raise the growth of agricultural GDP to 4 per cent. |
| "The challenge posed is to at least double the rate of agricultural growth and to recognise the increasing role of women," the paper says. |
| In 2004-05, women accounted for 34 per cent of principal and 89 per cent of subsidiary workers in agriculture. |
| While growth in agricultural GDP will improve rural employment, the plan panel believes that to absorb all new entrants into the labour force, non-agricultural employment needs to increase at over 6 per cent per annum during the 11th Plan period. |
| The commission is also concerned about the need to increase manufacturing competitiveness, which has accelerated in comparison with the 9th Plan but is unlikely to exceed 8 per cent in the current Plan period. |
| Stating that India cannot afford to neglect manufacturing, the paper has said that a major constraint in achieving faster growth in this area is the inadequacy of physical infrastructure. |
| "This gap must be filled within 5-10 years and development in infrastructure must, therefore, be accorded high priority in the 11th Plan," the paper says. |
| Mentioning the rich dividends accruing from the earlier emphasis on quality higher education, the paper calls for expanding capacities in higher learning through private sector initiatives. |
| The panel has also advocated a policy for compensation, proper resettlement, and rehabilitation of people displaced because of development projects, conflicts or calamities. It has also called for changes in the legal system. |
First Published: Oct 21 2006 | 12:00 AM IST