NEW DELHI: The Planning Commission on Wednesday approved the Approach Paper to the Eleventh Plan, which seeks to achieve an increased average GDP growth target of nine per cent and end the Plan period with a growth of 10 per cent.

The Commission met here under the chairmanship of Prime Minister Manmohan Singh.

Initiating the discussions on the Approach Paper, Dr. Singh said it would be the first time since the beginning of the planning process that "we will be aiming for a growth rate of 10 per cent in the final years of the Plan. In achieving this growth rate, we will be finally emerging into the front ranks of fast-growing developing countries."

Briefing newspersons, Planning Commission Deputy Chairman Montek Singh Ahluwalia said the Approach Paper, after "some modifications to take account of the discussions," would be processed for consideration by the National Development Council, which is likely to meet in December.

Two-pronged strategy

Proposing a two-pronged strategy of faster and more inclusive growth, the paper focuses on the need for faster reduction in poverty and greater attention to employment generation. It also outlines a strategy for doubling the growth rate in agriculture from two per cent to four per cent, providing expanded access and better delivery in health and education and promoting double-digit growth in manufacturing with particular emphasis on the labour sector.

As per the Commission's estimates, the gross budgetary support for the Plan (Centre and States combined) will have to go up by 2.5 percentage points of the GDP above the Tenth Plan period. This can be achieved within the constraints of fiscal prudence by way of higher tax collections and rationalisation of non-Plan expenditure.

Ambitious target

Earlier, the Prime Minister said that by ensuring an inclusive growth, the 11th Plan would set the economy on a growth path, which would liberate millions from the "perennial scourge of poverty, ignorance and disease ... This is an ambitious target but, I do believe, it is also a feasible one. However, it will require sustained efforts on many fronts to make this a reality."

Socio-economic targets

The Commission also listed the socio-economic targets that will require monitoring throughout the Plan period to ensure that the growth process is beneficial to the masses.

Among them are: creating seven crore new jobs, reducing educated unemployment to below five per cent and hiking real wage rate of unskilled workers by 20 per cent, apart from doubling farm sector growth.

"Agriculture growth at less than two per cent is an area of deep concern and is at the root of rural distress. With over two-thirds of the rural population still directly dependent on agriculture, it is imperative that we inject fresh dynamism into agriculture if we have to achieve the inclusiveness that we seek in our growth," Dr. Singh said.

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