Growth scaled down to 7-8% in MTA

Economic growth target has been scaled down from 8.1 to 7-8 per cent annually during 2002-07 in the mid-term appraisal (MTA) of the Tenth Fi...

Economic growth target has been scaled down from 8.1 to 7-8 per cent annually during 2002-07 in the mid-term appraisal (MTA) of the Tenth Five Year Plan.

Finance Minister P. Chidambaram said, ‘‘The Cabinet on Thursday approved the mid-term appraisal of the Tenth Plan of Planning Commission. MTA will now go to the National Development Council (NDC).’’

Asked whether MTA has scaled down growth projection for 2002-07, he said ‘‘the actual growth in the first three years has been less than what it was approved in Tenth Plan. In the first year itself (2002-03), growth was 4 per cent’’.

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GDP grew by 8.5 per cent in 2003-04 and the growth rate is estimated to be 6.9 per cent in 2004-05.

The average growth was 6.5 per cent in last three years. To attain 8.1 per cent growth during 2002-07, the economy has to grow by over 10 per cent annually in 2005-06 and

2006-07.

MTA has targeted a more realistic target of 7-8 per cent, which is envisaged in the National Common Minimum Programme (NCMP).

Speaking to a news agency, Planning Commission Deputy Chairman Montek Singh Ahluwalia said, ‘‘the National Development Council, chaired by Prime Minister Manmohan Singh, is likely to meet in June to finalise the targets.’’

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Apart from revising the growth targets, sources said MTA spells out 58 steps that will be the foundation for the future policies of the government during the Eleventh Five Year Plan.

The mid-term appraisal also proposes far-reaching reforms in labour, infrastructure, social sectors and further liberalising the foreign direct investment regime, especially in retail.