The Hindu Business Line : 11th Plan stress on expanding production base

The emphasis on the Eleventh Five-Year Plan (2007-12) would be on expanding the production base of the economy, which would be woven around "a growth process that is much more inclusive, that raises the income of the poor for a much faster reduction in poverty, expansion in good quality employment and access to essential services such as health and education for all sections of the population," the Prime Minister, Dr Manmohan Singh, said.

In his inaugural address to the National Development Council (NDC) meeting here, the Prime Minister said that agriculture growth has been less than 2 per cent per annum since the mid-1990s. "We cannot expect inclusive growth if we do not revitalise agriculture," he said adding that "agriculture as a whole is in crisis" and hence "we should focus on achieving higher productivity and incomes for all farmers in both crop and non-crop agriculture."

He urged the Chief Ministers to give high priority to ensuring efficient use of water resources and irrigation. He said the NDC Committee under the Agriculture Ministry is likely to make specific recommendations by early next year, which would be incorporated, in the 11th Plan.

In order to ensure greater employment opportunities in the non-farm sector, Dr Singh said the Centre would soon launch a Mission on Skill Development based on a thorough overhaul of extant training infrastructure.

The Plan panel has already put in place a task force on skill development that includes representatives of both the private and the public sector.

On infrastructure, the Prime Minister said: "We must make every effort to ensure that PPP (public-private partnership) succeeds as a means of delivering reliable infrastructure."

Voicing concern over the performance of the power sector in particular, he deplored the low level of investment in this sector.

"PPPs cannot be a solution if the power sector is financially unviable," Dr Singh said adding that "improving the efficiency of distribution and reducing transmission and distribution losses" were important.

"Otherwise we will not be able to finance capacity expansion, nor attract investment," he added.

In his presentation on the various components of the inclusive growth strategy, the Planning Commission's Deputy Chairman, Mr Montek Singh Ahluwalia, said that the 9 per cent GDP growth calls for an increase in total investment to 35 per cent of GDP.

Much of this would be in the private sector and hence the importance of fostering an investor-friendly milieu.

He said faster growth combined with tax reforms has spawned revenue buoyancy and this must be kept up.