New Delhi, March 23: With the Planning Commission moderating the 11th Plan (2007-11) growth target to average 8.1 per cent from the earlier projected target of nine per cent, Prime Minister Manmohan Singh on Tuesday cautioned that even if the country regained faster growth momentum, “it should not be taken for granted” in the backdrop of existing global challenges.

Chairing a meeting of the full Planning Commission to review and discuss the mid-term appraisal of the 11th Plan, Dr Singh expressed satisfaction, as he said: “A very positive feature of developments in recent years is that the growth performance across states shows definite narrowing of dispersion. Data are only available up to 2008-09, but they do show that previously poorer performing states are also accelerating. Our policies have not helped only the advanced states; they are also helping the poorer states to improve their performance as well.”
Recognising infrastructure sector as a demand booster, which could revive the economy at a time when exports are susceptible to global pressures, Dr Singh said: “The country needs high investment in infrastructure in the next two years of the 11th Plan for returning to faster growth, which remains a challenge in difficult global environment.” Against the target of $200 billion in 2008-09, the country ended that year with $185 billion in exports. This fiscal, exports may aggregate $160-165 billion.
“We will need another source of demand to offset slower exports growth and that demand should ideally come from an expansion in investment in infrastructure,” he emphasised.
Despite conceding that the country did not have data on poverty or even on employment after 2004-05, the Prime Minister said: “Our target for reducing poverty is to cut the percentage of the population below the poverty line by 10 percentage points during the Plan period. This implies a pace of poverty reduction more than twice that experienced in the past. Our success in ensuring inclusive growth depends critically on how well we do in this dimension of performance.” He, however, added that the question “whether the high growth rate experienced in the period after 2004-05 has helped to reduce poverty” can be answered confidently only after getting the estimates from the NSS survey, which will be available by 2011.
Speaking to the media after the meeting, Planning Commission deputy chairman Montek Singh Ahluwalia said the Prime Minister had asked the commission to prepare a final draft of the mid-term appraisal and bring it before the Union Cabinet for its approval. “Once it is cleared by the Cabinet, the document will go to the National Development Council and will become as a prelude in preparation for the 12th Plan.”
Earlier in the day, while inaugurating a conference on “Building Infrastructure: Challenges and Opportunities”, Dr Singh drew attention to the 11th Plan, which has estimated the country will need investments of over Rs 20 lakh crores in infrastructure over a five-year period. He also noted that “private participation in infrastructure development is indeed a feasible proposition and can help expand the sector.”

Age Correspondent