The Prime Minister Dr. Manmohan Singh has said that the aim of the government is not just growth of GDP but an inclusive and sustainable growth. Emphasising that Scheduled Castes, Scheduled Tribes and the weaker sections must participate fully in the growth process, he said the most important area for immediate action is to speed up the pace of implementation of infrastructure projects. Addressing the 12th Plan Meet in New Delhi this morning, the Prime Minister said that the Plan growth target has been revised to 8.2 per cent from 9 per cent as estimated earlier. Dr. Singh said, short-term economic problems present a challenge and there is a need to revive investment environment.
Conceding that the fiscal deficit of the country is too high and is attracting adverse comment from analysts, Dr. Singh said that it must be bought down over the medium term to release domestic resources for productive deployment in the economy.He said the 12th Plan projects a current account deficit of 2.9 per cent of GDP.He said,this must be financed mainly through Foreign Direct Investment and Foreign Institutional Investment flows so that reliance on external debt is limited.
The Prime Minister said that the programmes in infrastructure development, health, education, water resource management and skill development , Mahatma Gandhi National Rural Employment Guarantee Act, Pradhanmantri Grameen Sadak Yojana and Integrated wasteland Development programme are aimed at inclusiveness. Considerable resources are being allocated for these programmes for the uplift of Scheduled Castes, Scheduled Tribes and the weaker sections.
Referring to the agriculture growth, he said, it must be accelerated to about 4 per cent which was 3.3 per cent in the 11th plan. He also underlined the need for speedy growth in the manufacturing sector to generate employment in the country. He said, infrastucture developemnt is vital and it needs a public investment .Justifying the diesel price hike as an important step in the right direction,Dr.Singh said, rational energy pricing was critical as country's energy prices are out of line with world prices.He said, energy is a difficult area where policy needs a comprehensive review.
