Government approves new five-year plan with investments of $ 910,000 million

New Delhi, December 20, 2007. - In order to accelerate growth and extend its benefits to the entire population, India has approved the eleventh five year plan, which includes investments worth 910,000 million dollars through 2012.
"I am pleased that the National Council has given its approval to the Five-Year Plan," the vice president of the Planning Commission, Montek Singh Ahluwalia, following discussions, led by Prime Minister Manmohan Singh.
Entitled "Towards faster and inclusive growth," the mammoth five-year plan targets is 10 percentage points lower poverty rates, generate 70 million jobs and put the unemployment rate to a level below 5 percent.
The new five-year plan, an economic figure dating from the days when India was inspired by the Soviet policies, reflects the priorities of the country between this fiscal year and 2012.
The plan contains 27 national goals, including the strengthening of income, reducing poverty and infant and maternal mortality, and improving education and literacy of the population.
What really has raised passions, however, is the announcement of Prime Minister Singh of India, at the end of five years, could grow for the first time at a rate exceeding 10 percent.
During the five-year plan already completed, the Indian economy grew at an annual average of 7.5 percent, and in fact exceeded 9 percent the past two years, a significant rate but behind its larger neighbor, China.
The new set of rules establishes an initial period of four years in which India intends to maintain the growth of 9 percent, and last year that the country should take that symbolic step forward for up to two digits.
A possibility that Singh referred in his opening address the National Council, citing as additional guidelines dedication and an appropriate set of policies.
"Our economy has shown resilience to adapt to the challenges of globalization. In the past two decades, our industry-large and small, has been restructured and has become globally competitive, "he said.
"It is possible that with an appropriate set of policies and efforts of all regional and central governments, not only maintain high growth right now, but we manage to bring it to 10 percent," added the premier.
Taking advantage of the meeting, Singh also called for the formation of working groups in other areas such as education, agriculture and acceleration of permits for industrial and infrastructure projects.
With this petition, Singh outlined some of the chronic problems of the Indian economy: poor agricultural growth, resistance to the industrialization of the population, lack of adequate infrastructure or educational disadvantage.
In 2007, agriculture grew only 2.7 percent, which has prompted the government to give budgetary priority to the sector and put the increase at 4 percent.
In terms of infrastructure, both Singh and President of the Planning Commission have acknowledged that India needs investments of over 450,000 million dollars over the next five years.
Regarding education, India faces a serious problem of teacher absenteeism and illiteracy than a third of the population, which affects the lack of sufficient skilled workers.
Besides, India is experiencing resistance to industrialization and conversion to a service economy, as evidenced by the rejection of the special economic zones and the establishment of supermarkets in some regions.
Upon approval of the new plan was attended by heads of regional governments and Indian central government ministers, who discussed some of the issues before giving their approval to the plan.

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