Summary of approved 12th Five Year Plan October 13, 2012 - Decoded, Economics and Business, Miscellaneous, Politics

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The government on 4th october approved the 12th five year plan (2012-17) document that seeks to achieve annual average economic growth rate of 8.2 per cent, down from from 9 per cent envisaged earlier, in view of fragile global recovery. The theme of the Approach Paper is faster, sustainable and more inclusive growth .According to officials the projected average rate gross capital formation in the 12th Plan is 37 per cent of GDP. The projected gross domestic savings rate is 34.2 per cent of GDP and the net external financing needed for macro economic balance has been placed at 2.9 per cent of GDP. During the 11th Plan (2007-12), India has recorded an average economic growth rate of 7.9 per cent. This, however, is lower than the 9 per cent targetted in 11th Plan.Besides other things, the 12th Plan seeks to achieve 4 per cent agriculture sector growth during 2012-17. The growth target for manufacturing sector has been pegged at 10 per cent.The total plan size has been estimated at Rs.47.7 lakh crore, 135 per cent more that for the 11th Plan (2007-12).

The strategy challenges refer to some core areas that require new approaches to produce the desired results. Thes are:

1.Enhancing the Capacity for Growth

2.Enhancing Skills and Faster Generation of Employment

3.Managing the Environment

4.Markets for Efficiency and Inclusion

5.Decentralisation, Empowerment and Information

6.Technology and Innovation

7.Securing the Energy Future for India

8.Accelerated Development of Transport Infrastructure

9.Rural Transformation and Sustained Growth of Agriculture

10.Managing Urbanization

11.Improved Access to Quality Education

12.Better Preventive and Curative Health Care

Highlights of 12th Five Year Plan (2012-17): Average growth target has been set at 8.2 percent Growth rate has been lowered to 8.2 percent from the 9.0 percent projected earlier in view adverse domestic and global situation. Areas of main thrust are-infrastructure, health and education Growth rate has been lowered to 8.2 percent from the 9.0 percent projected earlier in view adverse domestic and global situation. The commission had accepted Finance Minister P. Chidambarams suggestion that direct cash transfer of subsidies in food, fertilizers and petroleum be made by the end of the 12th Plan period

After the cabinet clearance, the plan for its final approval would be placed before the National Development Council (NDC), which has all chief ministers and cabinet ministers as members and is headed by the Prime Minister Agriculture in the current plan period grew at 3.3 percent, compared to 2.4 percent during the 10th plan period. The growth target for manufacturing sector has been pegged at 10 percent During the 11th Plan period, the average annual growth was 7.9 percent A full Planning Commission chaired by Prime Minister Manmohan Singh on September 15 endorsed the document which has fixed the total plan size at Rs.47.7 lakh crore The 12th Plan seeks to achieve 4 percent agriculture sector growth during the five-year period On poverty alleviation, the commission plans to bring down the poverty ratio by 10 percent. At present, the poverty is around 30 per cent of the population. According to commission Deputy Chairperson Montek Singh Ahluwalia, health and education sectors are major thrust areas and the outlays for these in the plan have been raised. The outlay on health would include increased spending in related areas of drinking water and sanitation