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16 September 2010

INDIAN ECONOMY-OVERVIEW2010

Farm sector may achieve 3-3.5 pc growth in 11th plan

India's farm sector is likely to grow by 3-3.5 per cent annually during the 11th Five-Year Plan ending 2011-12, lower than the target of four per cent, the Planning Commission said.

"The rate of growth in agriculture in the Eleventh Plan is likely to be better than in the Tenth Plan. However, it may not reach the target of four per cent per year and instead range between 3 to 3.5 per cent per year," according to a Commission's note for discussion in the National Development Council meeting on July 24.

The Plan Panel, however, noted that agriculture production in 2010-11 would be better compared to last year, when the crop was severely hit by the worst drought in 32 years.

The agriculture sector, which contributes
17 per cent to GDP and employs 60 per cent of the population, grew by 0.2 per cent in 2009-10 fiscal. In the first three year of the current plan period, the average growth was 2.2 per cent.

The Planning Commission emphasised on undertaking steps to increase production so that the
four per cent growth target is "at least achieved in the Twelfth Plan period".

"Food Security will continue to be an important concern and we need to plan for growth in foodgrain production of around 2 to 2.5 per cent per year," the note said.

The
allied sectors (including dairy and fisheries) will have to grow at 6-7 per cent, it added. Highlighting important steps taken in the last few years, Plan Panel said that greater efforts were needed to achieve the targeted growth. The Commission noted that bio-technology holds great potential for expanding agri-productivity, but it also "raises concerns about safety in connection with the introduction of GM technology in foods".

The panel suggested that it was essential to establish a regulatory system that will ensure that safety is not compromised.

"The central government should expedite the establishment of statutory
Bio-technology Regulatory Board, with appropriate scientific expertise as quickly as possible," the note said. The panel asked states to pay more attention to agriculture development by strengthening research, extension system, state agri-universities and encouraging private sector in seed development.

Describing e
xtension service as the "weakest link", the panel said states should strengthen the extension system. "It is not an exaggeration to say that the extension service has collapsed in most states with large unfilled vacancies and also poor accountability of personnel where they exist," the note said.

1 comment:

  1. It is very useful sir. I am Arun priyan listen to your class in manithaneyam ias academy yesterday. really i admired your class. thank you sir. i am expecting for all your for coming classes.


    finally one advice sir... take care your health...

    ReplyDelete