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Planning Commission eyes 8% growth rate

Undeterred by the failure to achieve the 6.5 per cent growth target in the last four years, the Planning Commission has set eyes on an ambitious 8 per cent economic growth target for the Tenth Plan (2002-07), but with the caveat that it would require political will and consensus in critical areas.

"The Tenth Plan can only succeed in achieving 8 per cent growth if sufficient political will is mobilised, and a minimum consensus achieved will enable significant progress to be made in critical areas. If this is not possible then growth will be correspondingly lower," the commission said in its just-circulated draft approach paper for the Tenth Plan.

The commission has said that though the growth rate of eight per cent is lower than the growth rate of 8.7 per cent needed to double the per capita income over the next ten years, it could be viewed as an 'intermediate' target for the first half of the period.

In addition to the 8 per cent GDP growth rate the commission has also set targets for social indicators like poverty, employment and education.

Reduction of poverty ratio to 10 per cent by 2012, universal access to primary education by 2007, increase in literacy rates to 80 per cent by 2012 and increase in forest cover to 33 per cent by the same year are some of the other targets set for the Tenth Plan period.

In order to attain the eight per cent growth target the commission has said that the industrial sector will have to grow at over 10 per cent.

"The Tenth Plan must therefore focus on creating an industrial policy environment in which private sector companies including erstwhile public sector companies can become efficient and competitive," it said adding that this was especially important in view of the lifting of QRs and the proposed divestment.

In this context the commission has said that the divestment process should be accelerated to yield Rs 160 billion to Rs 170 billion per year on an average over the first three years of the Tenth Plan period.

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