UR Associates has come out with its report on infra space. The GDP growth rate achieved in the 10th Plan was at 7.6% and in the 11th Plan it was 7.9%.
The GDP growth rate achieved in the 10th Plan was at 7.6% and in the 11th Plan it was 7.9%; less than the targeted growth rate of 9%. As the Indian economy has slowed down with growth decelerating to 6.5% in 2011-12 and only 5.5% in the first quarter of 2012-13, the Planning Commission has now targeted a somewhat realistic assumption and expects the growth rate to be at 8.2% (from earlier estimated at 9%) over the 12th Plan Period. The main reason why actual growth rate in each Plan period was less than the targeted growth rate was the failure to achieve physical targets. Achievements of targets in 11th Plan
| Sector | XIth Plan | |
| Target | Achievement | |
| Roads | 48,479 Kms | Completed – 17,571 Kms Under implementation –13,981 Kms To be awarded – 16,927 kms |
| Additional power generation capacity created Coal production (per annum) | 78,700 MW | 55,000 MW |
| 680 million tones reduced to 630 million tonnes | 540 million tonnes | |
| Crude oil production (per annum) | 206.73 million tonnes | 177.09 million tonnes |
| Gas production (per annum) | 255.76 billion cubic metres | 212.5 billion cubic metres |
| Railways capacity creation | 21,500 Kms reduced to 15,000 Kms | 14,752 Kms |
Source: Government of India The major reason for underachievement apart from the global slowdown was the policy inaction by the Central Government; which finally came out of its shell and announced various important policy reforms on September 14th, 2012. The infrastructure sector will look at RBI on September 17th, 2012 for cuts in key policy rates for easing of interest rates. However, for ensuring the targeted growth rate immediate action is required to speed up the pace of implementation of infrastructure projects. This is crucial for removing supply bottlenecks which constrain growth in other sectors, and also for boosting investor sentiment to raise the overall rate of investment. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. To read the full report click on the attachment
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
