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9 May 2012

Government Takes Various Steps to Achieve Higher GDP Growth

As per the Advance Estimates released by Central Statistics Office (CSO) on February 7, 2012, growth rate of Gross Domestic Product at factor cost at 2004-05 prices for the financial years 2009-10, 2010-11 and 2011-12 is estimated at 8.4 per cent, 8.4 per cent and 6.9 per cent respectively. 

The reduction in growth rate in India is 2011-12 vis-à-vis last two years is attributed to both domestic and global factors. Some of the global factors that resulted in slowdown include, inter-alia, the crisis in the eurozone area and near-recessionary conditions prevailing in Europe; sluggish growth in many other industrialized countries, like the USA; stagnation in Japan; and hardening international prices of crude oil. Among domestic factors, the tightening of monetary policy; in order to control inflation resulted in slowing down of investment and growth, particularly in the industrial sector. 

The Approach Paper to the Twelfth Five Year Plan (2012-17) proposes a faster, more inclusive and sustainable growth with a target of 9 per cent annual growth rate of GDP. The key requirements for achieving the goal are better performance in agriculture (at least 4 per cent growth), faster creation of jobs in manufacturing, development of appropriate infrastructural facilities, etc. Certain specific measures taken by government, inter-alia, include enhancing level of investment for agriculture sector including irrigation projects, promoting Micro Small & Medium Enterprises (MSME) sector by way of higher allocation of funds, enhancing investment in the infrastructure sector focusing on Public Private Partnership and a number of legislative measures to develop the financial sector, etc. 

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha today. 

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