The Hindu Business Line : AP economy back on rails: CM

Andhra Pradesh is poised to achieve seven per cent compounded annual growth rate (CAGR) during the Tenth Plan period (2002-2007), with agriculture sector boosting its outcome.

A mid-term review of the implementation of the Tenth Plan by the Chief Minister, Dr Y.S. Rajasekhara Reddy, along with Mr D.A. Somayajulu, Economic Advisor, reveals that there is a smart recovery of the State economy of various sectors in the last two years and five months of the Congress rule in the State.

The increased growth rate in the first half of the Tenth Plan is perceived as a big achievement after "poor performance of the previous regime during the 1994-2004."

Going by the present pace of development, the State is poised to achieve 9 per cent annual growth rate in the 11th Plan period, with agriculture sector contributing about four per cent, the mid-term review observed.

During 1994-2004, the State economic growth had fallen to 5.5 per cent, lower than the national average of 6.1 per cent per annum, "due to neglect of the agriculture sector, which employed 55 per cent of work force in the State," the Chief Minister said.

"The negative growth rate in agriculture for almost a decade of the previous regime had brought down the income of large section of people employed in agriculture and led to unprecedented human tragedy of suicides which continued till the end of 2005," he added.

According to a statement from the Chief Minister's Office, the mid-term economic review showed that the initiatives of the Congress Government improved the agricultural yield and brought cheer to farmers. The suicide by farmers gradually came down due to a series of measures.

Dr Reddy said the ongoing irrigation projects would help cultivate an additional 75 lakh acres and improve agriculture productivity. The Government campaign had brought down the interest rates for agriculture.

RELIEF TO FARMERS

The Vidarbha-model package extended to Andhra Pradesh will help wipe off overdue interest on farmers' loans to the tune of Rs 1,500 crore.

Besides, the promotion of backyard poultry and dairy farms had helped insulating farmers against vagaries of nature with supplement income.

Andhra Pradesh has become a role model for its agricultural initiatives, IT promotion and also due to measures taken to contain Maoists, he said.

"Our women empowerment programme for self-help groups with a corpus of over Rs.2,500 crore has earned laurels from the World Bank Managing Director, Mr Graeme Wheeler, who hailed it as a model scheme for the empowerment of women of the entire world," said the Chief Minister.

Mr Reddy said the gross state domestic product (GSDP) of Andhra Pradesh at Rs 2,25,892 crore and its per capita income of Rs 25,625 were above the national average, the statement added.

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