PM makes out a case for 10 % growth with inclusiveness

New Delhi, Oct 18 (UNI) Prime Minister Manmohan Singh today set a target of ten per cent in the final years of the Eleventh Plan and made out a case for larger plan outlay focusing on agriculture, infrastructure and social sectors, but not at the cost of fiscal prudence.

In his address to the meeting of the Full planning Commission here, Dr Manmohan Singh said there was a case for larger plan size in both absolute terms and as a proportion of GDP.

''This cannot come at the cost of fiscal prudence and stability.

Higher spending is necessary which we are determined to provide, as we have done in the past three years. But this has to be matched with improvements in efficiency, expenditure, focus on outcomes and expansion of investments from all sources,'' he said. The Prime Minister unveiled a massive development programme of Rs 14 lakh crore for infrastructure development aimed at major effort at power, roads, railways, ports and airports. This would involve projects involving public-private sector partnership.

Dr Manmohan Singh said the growth rate should encompass doubling of agricultural growth and massiive employment opportunities.

''The 11th plan is going to be historic in many ways... we could have not asked for a better start... we would be finally emerging into the front ranks of fast growing developing countries,'' he said.

The Prime Minister listed out the strength of the economy, including buoyant FDI flows, moderate inflation, a comfortable external position as also current account deficit and foreign exchange reserves.

Dr Manmohan Singh, however, regretted that poverty was not falling fast enough. The Prime Minister said farm sector growth of less than two per cent was at the root of rural distress.

''With over two-third 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,'' he said.

The agricultural strategy needed policy intervention in areas like water management, focused research in specific crops, farming systems and dry land farming practices, he said.

Dr Manmohan Singh said agriculture must be one of the central elements of the planning efforts in the 11th Plan.

The Prime Minister sounded a note of warning on the growing disparities between different regions of the country and made out a case for inclusive growth.

UNI GS CS RN1830