Making growth inclusive
A major concern of policy –makers is that despite the significant acceleration in growth in the period since the Earth Summit, the benefits of economic growth have eluded large disadvantaged sections of the population. Much of the growth has occurred in the industrial and service sector, with the agricultural sector being stagnant. Some of the poorer states, with large sections of their population in the agricultural sector have shown low growth rates resulting in increasing regional disparities. Inter-personal, inter-regional as well as inter-community inequalities have been on the rise. The states with developed markets and good physical and social infrastructure have grown at a much faster rate than the others. In twelfth Five-Year Plan (2012-2017), the Planning Commission’s focus has been on instilling ‘inclusive growth.’
Infrastructure shortages
India has infrastructure shortages, a consequence of its economic growth outstripping infrastructure availability. This has impeded investment flow and constrained economic growth in the country. For ensuring sustainability of the growth process, it is imperative that infrastructure constraints are removed particularly in energy, roads, ports, airports and urban rural infrastructure. While in some areas, such as roads and airports, it has been possible to have the private sector participate in infrastructure investment; in many other areas the progress has been slow. Many new projects, and improved cargo handing at ports have been initiated, but there continues to be a massive gap. Public private partnerships (PPP) to execute infrastructure projects will be essential in the years to come. Projected investment required for infrastructure development during the twelfth Plan period (2012-2017) is INR 40.99 trillion; half of this is expected to come from the private sector.
Environmental quality concerns
A major concern of policy –makers is that despite the significant acceleration in growth in the period since the Earth Summit, the benefits of economic growth have eluded large disadvantaged sections of the population. Much of the growth has occurred in the industrial and service sector, with the agricultural sector being stagnant. Some of the poorer states, with large sections of their population in the agricultural sector have shown low growth rates resulting in increasing regional disparities. Inter-personal, inter-regional as well as inter-community inequalities have been on the rise. The states with developed markets and good physical and social infrastructure have grown at a much faster rate than the others. In twelfth Five-Year Plan (2012-2017), the Planning Commission’s focus has been on instilling ‘inclusive growth.’
Infrastructure shortages
India has infrastructure shortages, a consequence of its economic growth outstripping infrastructure availability. This has impeded investment flow and constrained economic growth in the country. For ensuring sustainability of the growth process, it is imperative that infrastructure constraints are removed particularly in energy, roads, ports, airports and urban rural infrastructure. While in some areas, such as roads and airports, it has been possible to have the private sector participate in infrastructure investment; in many other areas the progress has been slow. Many new projects, and improved cargo handing at ports have been initiated, but there continues to be a massive gap. Public private partnerships (PPP) to execute infrastructure projects will be essential in the years to come. Projected investment required for infrastructure development during the twelfth Plan period (2012-2017) is INR 40.99 trillion; half of this is expected to come from the private sector.
Environmental quality concerns
