NEW DELHI: Planning Commission Deputy Chairman Montek Ahluwalia has underlined the need for "inclusive" growth while the Rajasthan and Gujarat Chief Ministers sought flexibility in labour laws to boost foreign direct investment in the draft approach paper to the Eleventh Plan.

Addressing a regional consultation on the approach paper here on Monday, Mr. Ahluwalia said: "We are not looking for high but inclusive growth" even as he stressed the need to reverse the deceleration in the agricultural growth rate. He urged States to provide suggestions for more effective implementation of Centrally-sponsored schemes, which are sought to be raised substantially in the Eleventh Plan.

Both Gujarat Chief Minister Narendra Modi and Rajasthan Chief Minister Vasundhara Raje, who participated in the consultation, felt that there was need to make labour laws more flexible especially to attract more foreign direct investment. Mr. Modi also suggested that labour be withdrawn from the Concurrent List and brought under the State List to enable the States to chalk out their priorities in the sector.

Ms. Raje pointed out that the States would have to raise funds in the social sector by one to two per cent, implying that her State would have to generate an additional Rs. 20,000 crore for this sector. This would not be possible, she felt, given constraints of fiscal responsibility guidelines. Describing the consultation process on the approach paper as a healthy process, she said "out of box" thinking would definitely help in moving forward.

She maintained that the Sixth Pay Commission was being constituted at a time when the State was wriggling out of a debt trap and it could knock down the State's finances, therefore the Central Government should ensure that it led to a minimum outgo. Besides, she sought the Planning Commission's help in ensuring proper implementation of the 12th Finance Commission. Traditionally, she noted that Gross Budgetary Support to State plans had been to the extent of 40 per cent, which was subsequently scaled down to 25 per cent. It should be reverted to the original scale, she said.

The Gujarat Chief Minister, who described the approach paper as a good document for discussions, felt that the Planning Commission had not touched upon the issue of black money. He proposed that some directions could be given on launching a war against black money.

He also proposed serious consideration of the population explosion and sought incentives and disincentives to deal with the issue. In addition, he suggested formulation of a national policy against gender discrimination.

Mr. Modi stressed the need for a national energy policy and port development along with Special Economic Zones. He said Producer-to-Port (P2P) connectivity could be ensured through double-decker trains. He said his Government was willing to allocate land to those landlocked States interested in building ports in his State.

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