Agri growth could be down to 1.5 per cent this year Sunday, September 12 2004 11:55 Hrs (IST)
New Delhi:
The Planning Commission has raised the alarm bells on agricultural front, saying the growth in the sector could come down to 1.5 per cent this year as against a projected growth of 4 per cent.
Prime Minister Manmohan Singh, the plan panel chairman, has observed that the policies of the previous Governments contributed to the slowdown in agriculture.
The Approach Paper for Mid-Term Appraisal (MTA) for the 10th plan presented to Singh at the full plan body meet this week noted that the average agricultural GDP growth in the first two years of the plan period was 1.8 per cent and it is unlikely to exceed 1.5 per cent in the current year as against the targeted 4 per cent.
"In these circumstances, it is hardly surprising that the perception has grown that the benefits of the reforms have bypassed a substantial section of our people," Singh told the meeting, adding that the Government needed to give more attention to agriculture and rural development to reduce regional imbalances.
The Prime Minister observed that there was a "deterioration" in the economy since mid-90s, largely due to neglect of agriculture sector.
The plan document had projected a gradual acceleration of the growth rate of agriculture from about 3 per cent in the initial year to around 5 per cent in the terminal year.
The approach paper said the MTA will focus on corrective steps to improve delivery and achieve the best possible growth performance in the second half of the plan period.