Group 1 mains Indian Economy

1.  Write about the 11^th five year plan.

The Eleventh Five year Plan (2007-12)

1.     The National Development Council approved the 11^th plan on 19^th December 2007. The target of the plan is to raise the average economic growth rate to 9% from 7.6% recorded during the 10^th Plan.

2.     ‘Faster & more inclusive growth’ is the declared objective of the plan.

3.     The total outlay of Rs.36,44,718 crores is more than double the total outlay of 10^th plan. The central Government will contribute 59.2% to the outlay, while the states will contribute remaining 40.8%.

4.     The broad vision of the 11^th plan aims at rapid growth to reduce poverty & create employment opportunities, access to essential services in health & education, especially to socially and economically backward groups, empowerment, enhanced employment opportunities under NREGA, environment sustainability, women’s empowerment etc.,

5.     11^th plan focuses much on agriculture & sets a target of 4% growth rate in the agricultural sector.

6.     The 11^th Plan aims at raising the rate of growth of the industrial sector to 10% and manufacturing growth to 12% per annum. Plan puts an emphasis on infrastructural & skill development to attain these targets.

7.     Service sector, which is currently the fast growing sector of the economy, contributes 54% to the GDP. The 11^th plan gives a special focus on services sector so that its potential to create employment and growth is fully realised.

8.     11^th plan envisages a savings rate 34.8%. The investment rate is proposed to be raised to 36.7%.

9.     Main targets include reduction of poverty by 105 and to generate 70 million new employment opportunities.

10.   More stress is given to education sector in which Govt will be spending Rs.2,74,228 crores as compared to Rs.62,238 crores in the 10^th plan.

Major Targets   

1.     GDP growth rate 9% per annum.

2.     To increase agricultural growth rate to 4% per annum.

3.     To increase industrial growth rate to 10% and manufacturing sector to 12% per annum.

4.     To reduce poverty by 10% points and to generate 70 million employment opportunities.

5.     Reduce dropout of children from elementary schools to 20 % by 2012.

6.     Increase national literacy to 85%.

7.     To reduce the gender gap in literacy to 10% points.

8.     Reduce IMR to 28 and MMR to 1 per 1000 births.

9.     Raise sex ratio for age group 0-6 to 935 by 2011-12 and to 950 by 2016-17.

10.   To ensure electricity connection to all villages and BPL households by 2009.

11.   To ensure at least 33% of all direct and indirect beneficiaries of Government Schemes are Women and children.

12.   Provide all weather road connectivity to all habitations with population above 1000(500 in hilly areas) by 2009.

13.   To connect every village by telephone by November 2007 and provide broad band connectivity to all villages by 2012.

14.   Increase forest cover by 5% points and to attain ‘WHO standards of air quality’ in all major cities by 2011-12.

15.   Increase energy efficiency by 20% points by 2017.

Projected Sectoral Fund Allocation (11th Plan)

Sectors	Allocation (Projected)
Education	2,74,228 Crores
Rural Development  & PR	1,90,330 Crores
Infrastructure	1,28,160 Crores
Health & Family welfare	1,23,900 Crores
Agriculture & Irrigation	1,21,556 Crores
Energy	57,409 Crores

Macro Parameters for the 11^th Plan

Items	10th Plan	11th Plan
Domestic Saving rate( % of GDP MP)	30.9	34.8
Current Account Deficit( % of GDP MP)	1.5	1.9
Investment  rate( % of GDP MP)	32.4	36.7
Incremental Capital Out put Ratio (ICOR)	4.3	4.1
GDP growth rate ( % per annum)	7.5	9.0