India's Largest Database on New Projects
October 13,
2006: With core areas like infrastructure and agriculture expected to grow at 4%
each in the next five years, The Planning Commission has revised the economic
growth target for the 11th Plan upwards to 9%. Earlier it was targeted between
9-10%, depending on the performance of the agriculture sector and the growth of
infrastructure and the social sector.
To accelerate
growth rate to 9% during the next Plan, India will need to increase the total
investment rate from the present 29.1% to 35.1% of the GDP. This, however, is
much lower than the investment rates in China, which saves 45% of its GDP
compared with India’s 30%.
The focus of the
government in the 11th Plan would continue to be on infrastructure, agriculture,
and social sectors like education and health. The Planning Commission will soon
meet to discuss the draft approach paper, which will then be sent to the
Cabinet.
Prime Minister Manmohan Singh too had emphasized upon increasing investment for infrastructure development and said removing deficit in infrastructure was imperative to achieve GDP growth of 9-10% at a meeting on infrastructure development.
Source: Financial Express