11th Plan may target 3.5% farm growth

The Planning Commission is likely to set a 3-3.5 per cent growth target for agriculture for the 11th Plan period (2007-12). This will be below the 4 per cent target that Prime Minister Manmohan Singh and top economists want set for the sector.

Officials said the Plan body's approach paper on was also expected to target single-digit poverty levels in the country by the end of the Plan period. Poverty in India was estimated at 26.2 per cent in 1999-2000 and at 24.4 per cent in 2000-01.

The approach paper is likely to set the growth target for infrastructure at 7 per cent during the next five-year Plan period.

"The GDP growth rate is unlikely to cross the eight per cent mark during the next Plan period and it may hover around the same level," a Planning Commission official told Business Standard.

The officials said 7 per cent growth looked easily achievable given the present investment and the sectoral growth rates.

"With a little bit of extra effort, 7.5 per cent (growth) is achievable. But to achieve 8 per cent growth, the investment rate has to be stepped up significantly," an official said.

The approach paper will emphasise completion of ongoing schemes, especially those flagged under the National Common Minimum Programme. "As there has been less private participation than expected, a majority of the resources will be provided by public funds," a source said.

Planning Commission Member Kirit Parikh has made a presentation to commission officials. If the proposals were cleared, there would be a full Planning Commission meeting by the end of the month, the officials said.

"The approach paper is likely to receive the approval of the National Development Council (NDC) before the end of the current fiscal," they added.

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GREEN RUSH

This will be below the 4 per cent target that Prime Minister Manmohan Singh and top economists want set for the sector

Plan panel's approach paper is also expected to target single-digit poverty levels by the end of the Plan period