The Hindu Business Line : 8.5 % GDP growth viable, say northern States

Approach to Eleventh Plan
Massive investment, policy support needed for farm sector.
Main thrust would be developing infrastructure and private entrepreneurship.

THE PLANNING Commission Deputy Chairman, Mr Montek Singh Ahluwalia, with (from left) the Uttar Pradesh Chief Minister, Mr Mulayam Singh Yadav, the Himachal Pradesh Chief Minister, Mr Veerabhadra Singh, the Delhi Chief Minister, Ms Sheila Dikshit, and the Haryana Chief Minister, Mr Bhupinder Singh Hooda, at the regional consultations with the northern States in the Capital on Monday. — Ramesh Sharma

New Delhi , July 3

The Chief Ministers of the northern States told the Planning Commission on Monday that the economic growth rate of 8.5 per cent indicated in the Approach to the Eleventh Plan (2007-12) could be feasible, if the Central Government intervention in more areas impinging on development occurs to iron out the inter-State imbalances and ensure even development.

Talking to media at the end of the first day of the two-day consultation process, the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, said, "There are areas where Central policies need to be changed or improved. Equally, there are areas where the State policies need to be amended. It is a two-way street."

The meeting was chaired by Mr Ahluwalia and attended among others by the Delhi Chief Minister, Ms Sheila Dikshit, the Haryana Chief Minister, Mr Bhupinder Singh Hooda, the Uttar Pradesh Chief Minister, Mr Mulayam Singh Yadav, the Himachal Pradesh Chief Minister, Mr Virbhadra Singh, the Jammu and Kashmir Chief Minister, Mr Ghulam Nabi Azad, the Punjab Chief Minister, Captain Amrinder Singh, while the Uttranchal Chief Minister, Mr. N.D. Tiwari, was not present.

Better infrastructure

In his initial remarks and presentations, Mr Ahluwalia said the target average growth rate is 8.5 per cent, with agricultural growth rate being raised to 3.9 per cent and industry and services growth rates above 9 per cent. Other macro parameters for achieving 8.5 per growth rate include investment rate of 33.6 per cent, savings rate of 31 per cent, and current account balance of 2.6 per cent of GDP, import growth rate of 12.1 per cent and export rate of 16 per cent.

He said massive investment and policy support were needed for the farm sector even as there existed huge gaps in the field of education and health, which need to be plugged through "empowerment through education and comprehensive strategy for better health".

He said a thrust area of the 11th Plan would be the development of infrastructure and private entrepreneurship, which will have to be exploited to provide a spur to the public-private partnership schemes.

States want more

In her remarks, Ms Dikshit highlighted a host of issues hampering the development of the Capital region. She said the State must be allowed to set up joint power plants in some other states keeping in view the shortage of land in Delhi. She also underlined the need for low cost housing in the Capital as real estate prices have escalated.

The Uttar Pradesh Chief Minister, Mr Yadav, referred to the draft paper forecast to double per capita income in ten years and a growth rate of 8.5 during the next Plan. "We are of the view that it would be impossible to achieve the proposed growth rate until States like Uttar Pradesh achieve speedy development."

He also urged the Centre to make available necessary resources for developing infrastructual facilities to meet the State's requirements.

Other Chief Ministers, while endorsing the broad growth rate and development strategies spelt out in the Approach Paper, sought special dispensation to their States, in view of the constraints plaguing their state economies.

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