Economists critical of draft Approach Paper

NEW DELHI: Taking a critical view of the Approach Paper for the 11th Plan, noted economists on Friday said it was more of paperwork but failed to give a clear direction to achieve the targeted 8.5 per cent growth rate.

It appears that the document has taken the 8.5 per cent growth rate for "granted". It fails to give a more focused and clear direction to achieve the growth rate. Except for agriculture sector, the document has not taken up seriously the issues required for inclusive growth, noted economist Isher Ahluwalia said who was participating in the consultations held in Planning Commission to discuss the Approach Paper, which is under preparation.

Business as usual would not yield 12 per cent growth in the manufacturing sector, she cautioned and said the states have to be brought together and the Plan document has to present a roadmap for inclusive growth.

She said historically it has been seen that the Five Year Plans have always focused on development of social sectors but nothing substantial has been achieved. So she has sought clear policies and direction in the forthcoming document.

Vice Chancellor of Jawaharlal Nehru University B B Bhattacharya said structural changes would be necessary to boost domestic demand. He also pointed that the document did not mention any strategy for escalating oil prices, which could impact current account deficit.

Noted economist C H Hanumantha Rao expressed concern at the slippages in recurring plans for inclusive growth. He said achieving 8.5 per cent growth would be difficult but not impossible.