Approach Paper to the Tenth Five Year Plan (2002-2007)

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Chapter 1: Objectives, Targets and Strategy 1 Introduction 1 Objectives of the Tenth Plan 2 Feasibility of 8% Growth 4 Growth, Equity and Sustainability 5 Population 6 Quality and Productivity of Employment 6 Unresolved issues in tribal development 7 Continuing issues relating to Scheduled Castes, Other Backward Classes, and Minorities 7 Empowering the Disabled and Welfare of Other Disadvantaged 8 Environment degradation, poverty and economic development 8 Challenges of Urbanisation 9 Chapter 2: Resources and Other Measures 11 Central Finances 13 State Financing 14 Corrective Measures 17 Downsizing 18 Link development assistance to performance 18 Efficiency of Resource Use 19 The External Sector 21 The Financial Sector 22 Chapter 3: Sectoral Policy Issues 26 1. Agriculture and Land Management 26 2. Poverty-alleviation programmes 29 3. Public Distribution System and Food Security 31 4. Forests 32 5. Industrial Policy Issues 34 - Labour Policy 36 6. Science and Technology 36 7. Social Infrastructure 37 - Education 37 - Health 39 - Nutrition 40 - Rural Water Supply 40 8. Economic Infrastructure 41 - Electric Power 41 - Coal 43 - Hydrocarbons 44 - Non-Conventional Energy 44 - Railways 45 - Roads 46 - Ports 47 - Telecommunications 47 Chapter 4: Design of Programmes, Governance and the Institutional Framework for Development 48 Centrally Sponsored Schemes (CSSs) 48 Governance reforms 51 Chapter 5: Conclusions 56

Chapter 1: Objectives, Targets and Strategy
1.1 The Tenth Five Year Plan (2002-07) is being prepared against a backdrop of high expectations arising from some aspects of the recent performance. GDP growth in the postreforms period has improved from an average of about 5.7% in the 1980s to an average of about 6.5% in the Eighth and Ninth Plan periods, making India one of the ten fastest growing developing countries. Encouraging progress has also been made in other dimensions. The percentage of the population in poverty has continued to decline, even if not as much as was targeted. Population growth has decelerated below 2% for the first time in four decades. Literacy has increased from 52% in 1991 to 65% in 2001 and the improvement is evident in all States. Sectors such as software services, entertainment and IT enabled services have emerged as new sources of strength creating confidence about India’s potential to be competitive in the world economy. 1.2 These positive developments are, however, clouded by other features which give cause for concern. The economy is currently in a decelerating phase and urgent steps are needed to arrest the deceleration and restore momentum. This reversal is all the more difficult because it has to take place in an environment where the world economy is slowing down. There are several aspects of development where our progress is clearly disappointing. Although employment growth has almost kept pace with the labour force growth, the incidence of unemployment on Current Daily Status basis is relatively high at above 7%. More than half of the children 1-5 years old in rural areas are under-nourished, with girl children suffering even more severe malnutrition. The infant mortality rate has stagnated at 72 per 1000 for the last several years. As many as 60 per cent of rural households and about 20 per cent of urban households do not have a power connection. Only 60 per cent of urban households have taps within their homes, and far fewer have latrines inside the house. Deterioration in urban environment, increase in slum population, and in air, river and water pollution has vastly affected the quality of life of the urban poor. Land and forest degradation in the rural areas, and over-exploitation of groundwater is seriously threatening sustainability of food production. The decline in the juvenile sex ratio over the last decade,...
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