The pre-Budget Economic Survey on Friday said the over 10 per cent industrial growth projected in the Tenth Plan will not be achieved going by the current levels of investments.
The Survey, tabled in Parliament, said the approach to the Mid-Term Appraisal of the Tenth Plan has envisaged over 10 per cent industrial growth to realise the NCMP (National Common Minimum Programme) objective of 7-8 per cent GDP growth.
Economic Survey 2004-05: Complete Coverage
"It is doubtful that the targeted high growth can be achieved with the current levels of investment simply by reducing the incremental capital output ratio," it said.
Even after its increase in the last two years, the investment rate continues to be not only far below that in China and East Asia, but also lower than that assumed in the Tenth Plan, it added.
The MTA of the Tenth Plan being carried out by the Planning Commission would take stock of the economy and focus on corrective policy initiatives needed to reverse the deceleration in agricultural GDP growth from 3.2 per cent per annum during 1980-1996 to 2.6 per cent per annum in 1996-2002.
The MTA would also suggest new initiatives in critical areas in line with the priorities mentioned in the NCMP.
