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8/7/2019 STATISTICS,REPORTS AND PUBLICATIONS

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STATISTICS, REPORTS AND PUBLICATIONS

11 TH Year Plan

The Indian economy on the eve of the 11th Plan is in amuch stronger position than it was a few years ago. Afterslowing down to an average growth rate of about 5.5% inthe Ninth Plan period (1997-98 to 2001-02), it hasaccelerated in recent years and the average growth ratein the Tenth Plan period (2002-03 to 2006-07) is likely tobe about 7%. This is below the Tenth Plan target of 8%,but it is the highest growth rate achieved in any plan

period. While this performance reflects the strength ofthe economy in many areas, it is also true that largeparts of our population are still to experience a decisiveimprovement in their standard of living. The percentageof the population below the poverty line is declining, butonly at a modest pace. Far too many people still lackaccess to basic services such as health, education, cleandrinking water and sanitation facilities without which they

cannot be empowered to claim their share in the benefitsof growth. These problems are more severe in somestates than in others, and in general they are especiallysevere in rural areas.

1.1 A Vision for the 11th PlanThe 11th Plan provides an opportunity to restructure

policies to achieve a new vision of growth that will bemuch more broad based and inclusive, bringing about afaster reduction in poverty and helping bridge the dividesthat are currently the focus of so much attention. Thefirst steps in this direction were initiated in the middle ofthe Tenth Plan based on the National Common Minimum


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Programme adopted by the Government. These stepsmust be further strengthened and consolidated into astrategy for the 11th Plan. Rapid growth has to be anessential part of the strategy since it is only in a rapidlygrowing economy that we can expect to raise theincomes of the mass of the population sufficiently tobring about a general improvement in living conditions.

Fortunately, the growth objective is now more

achievable than it has ever been. Work done in thePlanning Commission and elsewhere suggests that theeconomy can grow between 8% and 9% per year on a

sustained basis provided appropriate policies are put inplace. With population growing at 1.5% per year, thiswould ensure that the real income of the average Indianwould double in ten years. It is also possible to adoptpolicies that will ensure that this growth is broad based,benefiting all parts of the country, and especially therural areas. This must be accompanied by a major effortto provide access to basic facilities such as health,education, clean drinking water etc., to large parts of ourpopulation which do not have such access at present.These essential public services not only impact directly onwelfare in the short run, they also determine economicopportunities for the future. Access to these services isnot necessarily assured even when growth leads to risingincome levels. Governments at different levels must

ensure provision of these services. Improved levels ofhealth and 1education are in fact critical inputs thatdetermine the growth potential in the longer term.

Even if we succeed in achieving broad based andinclusive growth, there are many groups that may still be


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marginalised. These include primitive tribal groups,adolescent girls, children in the age group 0 to 3, andothers who do not have strong lobbies to ensure thattheir rights are guaranteed. The 11th Plan must payspecial attention to the needs of these groups. Theprivate sector, including farming, small scale enterprisesand the corporate sector, has a critical role to play inachieving the objective of faster and more inclusivegrowth. This sector accounts for 70% of the totalinvestment in the economy and our policies must aim atcreating an environment in which entrepreneurship canflourish. However, it will also call for a substantialincrease in the allocation of public resources for planprogrammes in critical areas. These resources will beeasier to mobilise if the economy grows rapidly. Thegrowth component of the strategy is therefore importantfor two reasons: it will contribute directly by raisingincome levels and employment for the population ingeneral and it will also help to finance programmes that

are necessary to ensure that growth is more broad basedand inclusive. All this is feasible but it is by no meansinevitable. Converting potential into reality is aformidable task and cannot be achieved if we simply

continue on a business as usual basis. There is need fora self critical look at our programmes and policies to seewhat is working and what is not. Programmes designedto achieve particular objectives often fail to do so even

though substantial expenditure may be incurred on them.We need to move away from a focus on outlays to a hardlook at outcomes.

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