The document outlines key strategies and targets for India's Twelfth Five Year Plan presented to State Planning Boards. It aims to achieve faster, more sustainable and inclusive growth through developing human and institutional capabilities, promoting economic growth and inclusion, optimizing use of natural resources, and increasing engagement with the world. Specific goals include increasing education levels, reducing poverty and malnutrition, expanding electricity and road access, boosting manufacturing and job growth, and meeting targets for GDP, agriculture and green cover increases.

1. PRESENTATION TO
STATE PLANNING BOARDS
FRIDAY, JULY 6, 2012
Overview of the Twelfth Plan
Perspectives and Strategies
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2. Faster, Sustainable, and More Inclusive Growth
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 Plan must meet people’s aspirations—as seen from
our consultations.
 All States want faster growth—unity of purpose.
 Quality of growth is important—ethics, equity,
efficiency, and sustainability.
 People are principal agents of development
 Interests of weak and vulnerable are protected
 Driven by knowledge and innovation, not exploitation of
natural resources

3. Four dimensions of our approach
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 Developing Capabilities
 Human
 Institutional
 National
 Economic growth and inclusion
 Livelihoods
 The Earth and its resources
 Land
 Water
 Energy
 Engagement with the world

4. Developing human capabilities
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Two pre-requisites:
 Life: IMR, MMR, child sex ratio, malnutrition
 Personal identity: Aadhar
How to best use the demographic dividend?
 Education, skill development
 Teachers’ training
 Quality of teaching
 Enrolment and retention in secondary schools

5. Developing human capabilities … 2
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Other challenges
 Malnutrition
 Effects on education
 Effects on health
 Migration—linguistic barriers
 Medical facilities and trained staff, esp. nurses
 Mobile phones to access useful, timely information.

6. Developing institutional capabilities
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 Capacity building of all arms of the government.
 Legislature Union
 Executive State
 Judiciary PRI/ULB
 Delivery of public services
 Dispute resolution within government
 Improving regulatory capacities.
 Reforms that facilitate institutional innovation and
adaptation.

7. Developing national capabilities
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1) Infrastructure
 State governments’ capacities to use PPP in more
areas.
 Power reforms
 Railway reforms.
2) Science, Technology, and Innovation

8. Economic Growth and Inclusion
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 Unfavorable starting conditions, unlike the Eleventh
Plan.
 Difficult to grow faster than 8 percent, without being
more efficient in our use of resources.
 Global and local trade and finance: difficult to rely on
large-scale corporate investments to boost growth.
 Need a new strategy

9. The small business way to faster growth
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 SME share of total investment expanded even in the
crisis.
 More attuned to the domestic economy.
 Need to stimulate new entrepreneurship:
 Promotes inclusiveness too
 Enable existing SMEs to expand
 Capital: DFIs, insurance
 Human resources
 Closer policy collaboration between Union and States

10. Building on MGNREGS and NRLM
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 Foster entrepreneurship—lower cost of failure.
 Use assets created MGNREGS.
 More income in rural hands—spark local
entrepreneurship to spend that money.
 Promote the shift to more productive non-
agricultural growth.
 States and Panchayats roles are critical

11. Expand manufacturing
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 Expand labor-intensive light manufacturing.
 Markets
 Credit
 Technology
 Institutional reforms
 Making clusters more effective
 Need better logistics
 Improved industrial infrastructure
 Improving the business regulatory framework

12. Stronger financial system
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 Improving credit to agriculture, SSIs, and
infrastructure.
 Making insurance more useful and more
sustainable—especially for agriculture.

13. The earth and its resources
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 India has the lowest per-capita availability of natural
resources—planning must optimize their use.
 Increasing agitations on land, water, and forests.
 Climate change is accelerating.
 Soil health is deteriorating—unhealthy fertilizer use.

14. Rational land use
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 A growing and a wealthier population.
 Changing nutrition will need changes in cropping patterns.
 Trade-off between:
 agriculture and industrial/urban
 forests and minerals—both are national assets
 Managing urban land

15. Agriculture: rainfed farming
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 Apply natural resource management to rainfed
farming
 Focus on many crops and products that reinforce
each other—and strengthen the resilience of the
land
 This needs:
 Soil productivity
 Moisture management
 Seeds
 Farm mechanization

16. Energy: Efficiency plus alternate sources
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 Coal constraint will remain—improve energy
efficiency
 Nuclear energy must be promoted—but
apprehensions allayed.
 Decentralized generation and distribution of
energy—to meet rising urban demand.
 For rural and semi-urban, integrate existing
government schemes to attract private investment.

17. Water: efficiency, policy, and institutions
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 Water use efficiency in agriculture is the poorest in
the world.
 Need modern laws and policies on water and
groundwater
 Reduce pollution, through better designed
institutions.
 Challenges of increasing urbanization.

18. Engagement with the world
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 9 percent GDP growth requires 20 percent export
growth.
 External borrowings are likely to increase—volatile
FDI and FII.
 India can command more of the non-traded services
market—through migration to other countries.
 Use our soft power to strengthen our position
 Improve tourist inflows
 Engage more with neighboring countries—states
role

19. Proposed monitorable targets for 2017
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1) Increase Mean Years of Schooling to eight years.
2) Create two million additional seats for each age cohort in
higher education aligned to the skill needs of the
economy.
3) Reduce IMR to 28 and TFR to 2.1 by the end of the Plan.
4) Reduce malnutrition among children age 0-3 years and
anemia among girls and women to half of NGHS-3 levels.
5) Provide electricity to all habitations and reliable power by
the end of the Plan.
6) Connect all villages with all-weather roads, and improve
the quality of national and state highways.

20. Monitorable targets for 2017
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7) Real GDP Growth Rate of 8.5 percent.
8) Agriculture Growth Rate of 4 percent.
9) Manufacturing Growth Rate of 2 percent higher than GDP
Growth rate.
10) Reduce head-count ratio of consumption poverty by 10
percentage points over the immediately preceding
estimates.
11) Generate 25 million new work opportunities in the non-
agriculture sector.
12) Increase the green cover by 1 million hectares every year.

21. FOR MORE DETAILS CONTACT
PRONAB@NIC.IN
HARSH.SHRIVASTAVA@NIC.IN
February 23, 2016The Planning Commission
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Thank you