Panel says it’s tough to log 9% GDP during 11th 5 yr Plan
India may not achieve its growth target of nine per cent during the 11th Five-Year Plan period as the economic slowdown and drought are likely to take their toll, a senior Planning Commission member said.
“We set a growth target of 9-10 per cent for the 11th Plan. Though we began well in the first year (2007-08), the global meltdown impacted the growth rate in the second year (2008-09) and a drought this year will hamper it even more,” Planning Commission Member Arun Maira told reporters here.
The Planning Commission might revise the growth target by this year-end and is likely to conduct a mid-term appraisal of the 11th Plan. “Our economy is going through difficult period and the world economy will take a year more to recover from the global recession. The measures taken by the Government during the past eight months are aimed at a stronger economic performance,” planning commission member pointed out.
Global recession and drought were unforeseen events that disrupted growth momentum and the cyclic nature of many sectors. “We expect a strong rebound in the farm sector next year, 2010. But for the weak monsoon, the growth rate would certainly have been above seven per cent this fiscal,” Maira explained here.
Competitive models
Earlier, addressing the CII Manufacturing Summit, he exhorted the domestic industry to look at models of manufacturing that are competitive, involving more people and create more jobs in order to capitalise on country’s demographic dividend.
Maira said “India’s manufacturing contributes to around 15 per cent of GDP which is lower as compared to other major economies.” Further, he said “world is building inclusive manufacturing models. Inclusive manufacturing needs innovation in products, production methods and enterprise models. ” Understanding the importance of education and training in improving the position of Indian
manufacturing, Maira said “We need to have vocational training institutes across the country and they should be connected to small industries for providing hands on experience to students and faculty”.
