Achievements of the Tenth Plan

In this article we will discuss about Achievements of the Tenth Plan. After reading this article you will learn about: 1. Subject-Matter of Achievements of the Tenth Plan 2. Appraisal of the Tenth Plan 3. Sectoral Growth 4. Service Sector. 

Subject-Matter of Achievements of the Tenth Plan:

The Approach Paper of the Tenth Plan was prepared against a backdrop of high expectation arising from some aspects of the recent performance of the economy. Although the Tenth Plan was started under the NDA Government but after the election, when UPA Government came to power, it continued with the same plan for its implementation.

As the Tenth Plan has already completed its term, thus under this backdrop it is quite necessary to make a review of the achievements of the plan. Although up-to-date information is not readily available for making such appraisal but the observation made by the Economic Survey, 2003-04 and 2004-05 is an important input in this regard. Let us now examine the appraisal of the Tenth Plan on the basis of the statistics available so far.

Appraisal of the Tenth Plan:

Growth Rate:

In respect of attaining annual growth rate of GDP, although the approach of the Tenth Plan initially set the target of attaining 8.0 per cent annual growth rate of GDP but the plan started with a shortfall in the first year.

The Economic Survey, 2007-08 reveals that the growth rate of GDP at 1999-2000 prices was only 3.6 per cent in 2002-03 but then jumped up to 8.6 per cent and 7.3 per cent in 2003-04 and 2004-05 respectively and then attained 9.6 per cent in 2005-06 and 9.7 per cent in 2006-07.However, the annual average growth rate attained during the Tenth Plan is estimated at 7.8 per cent as against the target growth rate of 8.0 per cent.

Gross Domestic Savings and Capital formation:

During Tenth Plan, the gross domestic savings attained a growth rate of 26.4 per cent in 2002-03 and 29.8 per cent in 2003-04 and 34.8 per cent in 2006-07. Again the gross domestic capital formation of the country attained a growth rate of 25.2 per cent in 2002-03 and then to 28.2 per cent in 2003-04 and 35.9 per cent in 2006-07. The target for the domestic savings rate during the Tenth Plan was fixed at 26.84 per cent.

Employment Generation:

The Tenth Five year plan aimed at provision of gainful and high quality employment in excess of addition to labour force to reduce the number of unemployed significantly by the end of the plan.

On the whole, the Tenth Plan aimed at creation of approximately 50 million employment opportunities—30 million from normal process of growth and additional 20 million from special initiatives— during the period of five years. The result of 61st NSSO round show that above 47 million persons were provided employment during 2000 to 2005.

Sectoral Growth:

Agriculture:

Although the draft Tenth Plan had set a target to attain annual average growth rate of 3.97 per cent in Agriculture and allied sector, but during the Tenth Plan it has attained (-) 7.2 per cent in 2002- 03 and then to 10.0 per cent in 2003-04 and 6.0 per cent in 2005-00 and is expected to attain only 2.7 per cent in 2006-07.

Total production of food grain increased from 179.4 million tonnes in 2002-03 to 212.4 million tonnes in 2003-04 and then to 217.3 (P) million tonnes in 2006-07. The index of agricultural production (1981-82 = 100) increased from 150.4 in 2002-03 to 181.0 in 2003-04 and then to 207.7 in 2006-07. Thus the agriculture and allied sector has been showing a mixed performance.

Mining:

In respect of mining and quarrying, the Tenth Plan has set a target of attaining 4.30 per cent but during the first three years of the plan, this sector could attain an average growth of 5.26 per cent. The yearly growth rate of this sector was 5.8 per cent in 2002-03 and then declined to 5.2 per cent in 2003-04 and then to 4.4 per cent in 2004-05 and then declined to 1.0 per cent in 2005-06 and 5.4 per cent in 2006-07.

Industry:

As against the targeted growth rate of 9.82 per cent in the manufacturing sector during the Tenth Plan, this sector could attain on an average 7.46 per cent during the first three years of the plan. Again, in respect of Electricity, Gas and Water supply, as against the targeted growth rate of 7.99 per cent, this sector could attain 6.4 per cent during the first three years of the plan.

But taking the industry sector as a whole, the growth rate attained in this sector was 5.7 per cent in 2002-03, and then 7.0 per cent in 2003-04 and then to 8.2 per cent in 2005-06. In 2006-07, the same growth rate is expected to be 11.6 per cent.

Service Sector:

The services sector improved its performance from 7.3 per cent in 2002-03 to 8.2 per cent in 2003-04 and 9.8 per cent in 2005-06 and is expected to grow at 11.2 per cent in 2006-07 as against the target of 9.26 per cent.

Transport, Communication and Trade:

Although the Tenth Plan set a target of 5.40 per cent for rail transport, 7.54 per cent for other transport and 15.0 per cent in communication and 9.44 per cent in trade, but during the first two years of the plan, this sector could attain an average growth rate of 9.1 per cent in 2002-03 and 12.0 per cent in 2003-04 and 10.4 per cent in 2005-06 and is expected to grow at 13.0 per cent in 2006-07.

Price Behaviours:

During the Tenth Plan, the price behaviour of the country reflects a moderate behaviour in its price level. Accordingly, the average rate of inflation (WPI) which was 3.4 per cent in 2002-03, gradually rose to 5.5 per cent in 2003-04 and 6.4 per cent in 2004-05 and then declined to 4.4 per cent in 2005-06 and then to 4.90 per cent (up to January 20, 2007) in 2006-07.

Thus the appraisal of the Tenth Plan shows that Indian economy has been experiencing a mixed performance during the plan.

Although the country has experienced a slowdown in the growth path in the initial year of the Tenth Plan, but it has been able to reverse the situation towards the favourable path in the latter part of the plan. But it is also crystal clear at this moment that the attaining economic growth rate of 8.0 per cent per year, which was envisaged for the Tenth Plan is a tall expectation.

However, Economic Survey, 2003-04 observed in this connection, “The economy appears to be a resilient mode in terms of growth, inflation and balance of payments, a combination that offers large scope for consolidation of the growth momentum with continued macro-economic stability”.

Economic Survey, 2004-05 observed in this connection, “The performance of the Indian economy in 2004-05 so far has exceeded expectations formed at the beginning of the year. Buoyed by a rebound in the agriculture and allied sector and strongly helped by improved performance in industry and services, the economy had registered a growth rate of 8.5 per cent in 2003-04.”

The Economic Survey, 2005-06 observed in this connection, “The robust demonstration of its nascent strengths, the Indian economy, after growing at 8.5 per cent and 7.5 per cent in the two previous years, is projected to grow at 8.1 per cent in the current year 2005-2006”.

The growth trend for the last four years appears to indicate the beginning of the new phase of cyclical upswing in the economy from 2003-04. Initial momentum to this new phase of expansion, in 2003-04, was provided by agriculture.

In contrast to the sharp fluctuations in agriculture, industry and services have continued to expand steadily. Indeed, since the beginning of the Tenth Plan in 2002-03, with annual growth of 7.0 per cent or more, industry and services have acted as the twin engines propelling overall growth of the economy.