States can do better: Montek Singh Ahluwalia

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The Planning Commission is targeting a growth of 9-9.5 per cent for the country during the 12th Five Year Plan and it wants the state governments to play a major role in achieving this.

“We are looking at targeting at 9-9.5 per cent growth; now we’re exploring whether it is possible or not. But this Plan year will be inclusiveness growth and state governments will have to play a huge role for this growth,” Montek Singh Ahluwalia, deputy chairman of the Planning Commission, said in a speech delivered at the Indian Overseas Bank platinum jubilee celebrations here on Saturday.

Growth in 10th Five Year Plan was 7.8 per cent and by end of 11th Five Year Plan it is expected to be around 8.2 per cent.

“The growth has been evolved around few states in the country. In recent days Madhya Pradesh, Bihar, Rajasthan, Uttar Pradesh and Uttar Pradesh have done well,” he said, adding that the upcoming Plan will see whether other states can contribute to India’s overall growth in the coming years.

However, fiscal deficit, agriculture growth, management of energy, water and urban transmission are the main challenges during the Plan period, Mr Ahluwalia said.

Agriculture, which contributes to 15% of GDP, needs to grow by 4 per cent more, he said.

“The growth is more in the hands of state governments, since 80-85 per cent needs to be done by the states,” he added.