New strategy needed to grow over 8 pc in 12th Plan

In a presentation before the state planning boards, Principal Advisor Pronab Sen said it would "difficult to grow faster than 8 per cent, without being more efficient in our use of resources".

Pointing out that 12th Plan has started at a time when the conditions are unfavourable, Sen said that a new strategy would be needed to achieve higher growth.

The strategy would include optimal utilisation of natural resources, improving credit flow to small scale industries, agriculture and infrastructure sector.

Sen further said that in order to achieve 9 per cent growth rate the country would need to expand exports by 20 per cent per year and increase engagement with the world to attract more foreign investments.

Giving another scenario, he said the could opt for 8.5 per cent growth rate where it would have to maintain agriculture growth rate of 4 per cent and manufacturing at 10.5 per cent.

Besides, he said, the country would have to generate 25 million new work opportunities in the non-agriculture sector and increase the green cover by one million hectare every year.

Sen also asked to reduce the poverty ratio by 10 per cent during the five year period for 8.5 per cent economic expansion during 12th Plan.