India to achieve 10 pc growth in 11th Plan : FM

New Delhi, Dec 14: Finance Minister P Chidambaram today indicated that the country would be able to achieve 10 per cent growth figure during the Eleventh Five-Year Plan period but the government's priority would be to check the rising inflation.

Replying to the discussion on two Supplementary Demands in Rajya Sabha, the Minister said he believed that the double digit growth was possible despite all the political and ideological differences.

''We are being rated in the second position in the world and I am not at all satisfied with this rating. We should touch this figure in the 11th Plan period and sustain the growth for the next five to 10 years like China has done, only then will I be a satisfied person,'' he said.

Mr Chidambaram said as far as the growth rate was concerned, two years during 2001-03 were a 'bad patch' with the year 2002-03 touching the lowest growth rate. However, a normal growth in 2003-04 made an illusory growth of 8.5 per cent, giving an appearance of robustness in the economy. ''This year, the country had achieved a 9.1 per cent growth and it should be our endeavour to surmount 10 per cent growth and sustain it for five to ten years like China has done. We can achieve it, I believe it is possible,'' the Finance Minister declared.

The Rajya Sabha returned the two Bills after discussion.

Referring to the criticism that the Government had done little to help the 'Aam Aadmi', Mr Chidambaram asked what they had meant by common man. The government had provided Rs 1,13,448 crore to the states because of improved revenue colection and this meant that the money flows to the people -- the common man. He said the government had entered into an understanding with the Asian Development Bank for one billion dollars and a similar amount would be sourced from World Bank and other agencies to revamp the entire cooperative credit which was in total shambles.

The Government would give a package of Rs 13,596 crore to those states which were ready to sign and implement the MoU for revamping the cooperatives. The money would be available to the states which can implement the MoU, he said.

Regarding the demand from the states for a two per cent subvention on the interest on farmers' cooperative crop loans, the Finance Minister said he initially resisted as none of the states like Andhra Pradesh, Karnataka and Punjab were willing to bear the burden. Three weeks ago, the Centre had agreed to bear this burden.

He said now every crop loan would have to be under seven per cent limit and if there was any instance of any lending institution charging over seven per cent interest, strong deterrent action would be taken, he said to which the members thumped their desks.

He said the lending to students, self-help groups had increased during the UPA regime and the money pumped into these sections was to help uplift the common man, he maintained.

Eds: Here pick up suitably from earlier series.

UNI