As per the Advance Estimates released by Central Statistics Office (CSO) on February 7, 2012, growth rate of Gross Domestic Product at factor cost at 2004-05 prices for the financial years 2009-10, 2010-11 and 2011-12 is estimated at 8.4 per cent, 8.4 per cent and 6.9 per cent respectively.
The reduction in growth rate in India is 2011-12 vis-à-vis last two years is attributed to both domestic and global factors. Some of the global factors that resulted in slowdown include, inter-alia, the crisis in the eurozone area and near-recessionary conditions prevailing in Europe; sluggish growth in many other industrialized countries, like the USA; stagnation in Japan; and hardening international prices of crude oil. Among domestic factors, the tightening of monetary policy; in order to control inflation resulted in slowing down of investment and growth, particularly in the industrial sector.
The Approach Paper to the Twelfth Five Year Plan (2012-17) proposes a faster, more inclusive and sustainable growth with a target of 9 per cent annual growth rate of GDP. The key requirements for achieving the goal are better performance in agriculture (at least 4 per cent growth), faster creation of jobs in manufacturing, development of appropriate infrastructural facilities, etc. Certain specific measures taken by government, inter-alia, include enhancing level of investment for agriculture sector including irrigation projects, promoting Micro Small & Medium Enterprises (MSME) sector by way of higher allocation of funds, enhancing investment in the infrastructure sector focusing on Public Private Partnership and a number of legislative measures to develop the financial sector, etc.
This information was given by the Minister of State for Finance, Namo Narain Meena in written reply to a question in Rajya Sabha.