12th Five Year Plan of the Government of India (2012-17) is under drafting which aims at the growth rate

at 9.5%.[1]

With the deteriorating global situation, the Deputy Chairman of the Planning Commission Mr Montek Singh Ahluwalia has said that achieving an average growth rate of 9 per cent in the next five years is not possible. "It is not possible to think of an average of 9 per cent (in 12th Plan). I think somewhere between 8 and 8.5 per cent is feasible, Mr Ahluwalia said on the sidelines of a conference of State Planning Boards and departments. The approached paper for the 12th Plan, approved last year, talked about an annual average growth rate of 9 per cent. When I say feasible...that will require major effort. If you dont do that, there is no God given right to grow at 8 per cent. I think given that the world economy deteriorated very sharply over the last year...the growth rate in the first year of the 12th Plan (2012-13) is 6.5 to 7 per cent. He also indicated that soon he would share his views with other members of the Commission to choose a final number (economic growth target) to put before the countrys NDC for its approval. Though the 12th Plan has taken off, it is yet to be formally approved. The Planning Commission has set a deadline of September for taking the approval of the National Development Council. The council is expected to meet after July subject to the convenience of the Prime Minister. Poverty The Government intends to reduce poverty by 10 per cent during the 12th Five-Year Plan. Mr Ahluwalia said, We aim to reduce poverty estimates by 2 per cent annually on a sustainable basis during the Plan period. According to the Tendulkar methodology, the percentage of population below the poverty line was 29.8 per cent at the end of 2009-10. This number includes 33.8 per cent in the rural areas and 20.9 per cent in the urban areas. Earlier, addressing a conference of State Planning Boards and Planning departments, he said the rate of decline in poverty doubled during the 11th Plan. The commission had said, while using the Tendulkar poverty line, the rate of reduction in the five years between 2004-05 and 2009-10, was about 1.5 percentage points each year, which was twice that when compared to the period between 1993-95 to 2004-05.

Planning Commission Deputy Chairman Mr. Montek Singh Ahluwalia has opened the growth target of 9% to 9.5% for the coming 12th five year plan (2012-2017) of India. He also clarified that 10% average growth target for 12th plan period will not be feasible and it would be somewhere between 9%-9.5%. The major area of focus is going to on increasing agricultural productivity. In 11th plan, the agricultural growth was targeted at 4% on an average but it has been estimated to remain at only 3% level. Planning wants to make sure that agriculture should attain 4% average growth targeted in coming 12th five year plan. The approach paper of 12th plan lays stress on faster more inclusive and sustainable growth. The outline of the approach paper also puts special thrust on achieving more progress in health and education, besides improving the gender ratio. Planning Commission has favoured further liberalisation of the foreign direct investment (FDI) policy and improvement of business regulations to raise the growth rate of gross domestic product to 9%9.5% in the 12th five year plan (2012-17). Taking the note of weak manufacturing performance, Planning Commission emphasised the need to target a growth of 11%-12% in this sector in 12th plan period. Infrastructure constraints are the major concerns for the plan panel. Setting up of National Manufacturing investment zones and a better business regulatory framework to ensure a broad industrial base have been outlined by the plan panel. The plan panel has estimated countrys economic growth during 11th plan (2007-12) at 8.2& on an average which is lower than the original growth target of 9% set for the 11th plan period. However, the Planning Commission finds 8.2% growth as remarkable, considering the global economic downturn during 11th plan period. On micro, small and medium enterprises, the panel supported the idea of promoting clusters to enhance productivity in the sector. The Planning Commission also said that the government should target 4% growth in agriculture, during the 12th plan period. For this, farmers should be provided with better rural infrastructure, including storage and food processing facilities. The panel had also suggested expanding the Rashtriya Krishi Vikash Yojana to develop the farm sector.