Key Sectors Growth Slips in 11th Plan - The New Indian Express

Key Sectors Growth Slips in 11th Plan

Published: 21st February 2014 06:00 AM

Last Updated: 21st February 2014 01:37 AM

Like every other indices India’s annual economic growth rate for the 11th Five Year Plan (2007-2012) was down to 8 per cent as against targeted rate of 9 per cent,  Parliament was informed.

The farm sector grew at an average of 3.7 per cent as against a target of 4 per cent in the said Plan period. The service sector also showed dismal growth and grew at a paltry 9.7 per cent as against a target of 11 per cent.

As against an annual average growth of 10-11 per cent envisaged for the industry during the period, the actual annual average growth stood at 7.2 per cent during the Plan period.

In his written reply to the Rajya Sabha, Planning Minister Rajeev Shukla said “The shortfall in achievement of (various growth targets) can be attributed both to internal and external factors viz. global slowdown, fluctuations in international prices, strong inflationary pressures and negative growth in agriculture due to drought like situation.”

In another reply to the House, Shukla said, “several steps have been undertaken to address the slowdown in GDP growth, including the setting of Cabinet Committee on Investment to fast track large infrastructure projects, strengthening of financial and banking sector and steps to increase infrastructure financing.”

In its advance estimates, Central Statistics Office (CSO) has pegged the economic growth in the current fiscal at 4.9 per cent which would be slightly higher than 4.5 per cent achieved in 2011-12.

According to Shukla’s statement, the Approach to the 12th Five Year Plan (2012-17) had envisaged 9 per cent annual average economic growth rate which was later fixed at 8 per cent by the National Development Council (NDC) in December 2012 while approving the five year policy. These growth targets for the 12th Plan would be reassessed in the mid-term appraisal of the five year policy in 2014-15. In the backdrop of lower economic growth rates of 4.5 per cent in first year of 12th Plan (2012-13).

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