NEW DELHI: Even as External Affairs Minister Pranab Mukherjee projected a double-digit growth "in the realm of a possibility,'' the Planning Commission Deputy Chairman, Montek Singh Ahluwalia, on Tuesday declared that the country would fail to achieve the Tenth Plan target of eight per cent GDP (gross domestic product) owing to a slowdown in the manufacturing sector.

Addressing the Economic Editors' Conference here, Dr. Ahluwalia maintained that India would finish the Plan period ending March 2007 with average growth of 7.2 per cent. However, even at this level, it would be the highest growth rate ever achieved during any five-year Plan period, he said.

"Growth is taking place in a much more open world and the industry is also looking very confident,'' Dr. Ahluwalia said. Despite this, the manufacturing sector's growth during the five years beginning 2002 at not more than seven per cent, on an average, would "not be satisfactory,'' he said.

At the same time, he stressed that the targeted growth of nine per cent during Eleventh Plan was achievable although agriculture and power were the two major sectors of concern. "Power is the area I am most concerned about, as it is the most difficult area,'' he said.

The prime focus area of the next Plan period, he said, would be on regaining the momentum in agriculture. The farm growth target for the Plan period, he said, was being set at four per cent as against the less than two per cent growth witnessed at present. This, he said, could be largely achieved by expanding irrigation projects in dryland areas, which had seen little improvement. "Through efficient use of water, agriculture can be encouraged in dryland areas," he said.

HRD stand endorsed

On the allocation of funds for education, Dr. Ahluwalia endorsed the Human Resource Development Ministry's stand for funding to the extent of six per cent of the GDP and asked the Centre and states to garner more resources.

"We will try to reach the figure as soon as we can. Education is a high priority for us. Both the Centre and states should make major efforts to provide more resources for the sector,'' Dr. Ahluwalia said.

Dr. Ahluwalia noted that more resources were necessary for primary, secondary and higher education and the sector was being given priority during the 11th Plan. He also recalled that much before the HRD Ministry, the Kothari Committee too, had sought a higher allocation. Therefore, the Ministry's contention for six per cent GDP allocation was tenable, he said.

Nothing, however, has as yet been finalised on the matter, he said while noting that the Approach Paper to the 11th Plan was yet to be given the final shape.

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