Agri, industry to fall short of growth target in 11th Plan

The government today said growth in agriculture and industry sectors are likely to fall short of targets during the current Five Year Plan ending March 2012.

"By taking into account the Advanced Estimates released by Central Statistics Office, the services sector is expected to achieve the 11th Five Year Growth Targets," Minister of State for Planning Ashwani Kumar told the Lok Sabha in a written reply.

"However, there may be some shortfall in achieving the growth targets of Eleventh Five Year Plan in agriculture and industrial sector," he said.

Agricultural sector is projected to grow by 3.3% during the 2007-12 period, lower than target of 4%, he said.

In the current Plan period, industry sector is anticipated to grow by 6.7% against the target of 10-11%.

However, services sector is projected to see a growth of 9.9%, in line with the target of 9-11%, the minister said.

Kumar said a negative growth rate and drought like situation in 2008-09 and 2009-10, is expected to result in a short fall in agricultural growth during the current plan period ending March 31, 2012.

"The sluggishness in the growth of the industrial sector was mainly due to global economic slowdown, inflationary pressure and high degree of volatility in the global oil prices," the Minister said.

He said the approach paper to 12th Five Year Plan (2012-17) recognises the need for higher level of investments in agriculture by public as well as private players.

On the manufacturing sector, Kumar said the government wants to improve global competitiveness, strengthen the physical infrastructure, enhance the role of small and medium enterprises and ensure availability of skilled workforce.