Double-digit growth expected by 12th plan: Pranab Mukherjee

The government is making efforts to achieve double-digit growth in the 12th Five-Year Plan (2012-17), finance minister Pranab Mukherjee said today. 

"We have had 6.7% growth and 7.4% growth (in the earlier fiscals). This year, I have projected a growth of about 8.5%."

"If this trend continues, I am confident that during the 11th Plan, it can reach 9%. We are making efforts to achieve a double-digit growth by the 12th Plan," Mukherjee told reporters here after inaugurating Yes Bank's West Bengal and North East banking operations.

Expressing concern over the inflationary pressures on the economy, especially food inflation, he said the government had
already taken steps to curb this trend by placing edible oil,
pulses and sugar under Open General Licence.

"But unfortunately, the international prices of these commodities remained high. We are, however, expecting the prices of sugar to come down somewhat as a result of a bumper crop domestically," he said.

Stressing the need for streamlining the PDS to bring down food inflation, he said the matter was discussed at the chief ministers' conference in Delhi in February.

He said it sub-group was expected to shortly submit its recommendation on the matter and the government would act on
it.

Meanwhile, to help the supply side, RBI has increased CRR by 25 basis points to suck out excess liquidity.

Earlier, inaugurating the banking operations, Mukherjee said that the people of the country had waited too long for double-digit growth.

Describing growth as an economic environment that offers more wealth, employment, opportunities and access, he said the development strategy adopted by the UPA government was not one of mere commitment but actual entitlement.

"The days of commitment is over. People must now have entitlement, not merely by political announcements, but legally," he said, adding that Acts like NREGA, RTI and RTE were aimed at giving entitlements to the people.

Stating that it was not possible for banks to have a physical  resence in all six lakh villages of the country, he said that they could take recourse to IT and ITES like mobile banking to take banking services to places where they did not have a physical presence.

Praising Yes Bank founder Rana Kapoor for deciding to open operations in the North-East, he said it had a high growth potential and an important region in the prime minister's 'Look East' policy.

"Yes, there are problems in the North-East like insurgency and law and order, but, it also needs development. Once development comes, other problems can be taken care of. It is, of course, the responsibility of the state to create a conducive atmosphere for development," he said.