The Planning Commission released a document, in January, 2003 titled “India Vision 2020” served by Dr. S.P. Gupta, then person in the Planning Commission. The document examines many important issue however the ones that be noticed most powerfully are employment and education.
Predominantly, the document refers back to the average performance of the list of upper-middle income countries as benchmark for India’s development challenges and achievable goals by 2020. These targetted goals are follows:
1) Growth rate of GDP of 9 percent per annum
2) Quadrupling of per capita income.
3) Sectoral composition of GDP in percentage terms as follows
- Agriculture 6.0%
- Industry 34.0%
- Service 60.0%
4) New employment opportunities of 20 crores @ 2 percent annual employment generation.
5) Poverty as percentage of population below poverty line – 13.0
6) Male adult literacy rate – 96.0
7) Female adult literacy rate 94.0
8 ) Life expectancy at birth – 69 years
9) Infant Mortality Rate per 1000 liver birth – 69 years
10) Infant Mortality Rate per 1000 live births – 22.5
11) Foreign Direct Investment as percentage of gross capital formation – 24.5
12) Gross FDI as percentage of GAP (PPP) – 3.5
13) All children in the age group of 6 – 14 years in schools.
14) Percentage share of employment in agriculture – 40.0
15) Urban population as percentage of total population – 40.0
Salient Features of the New Economic Policy
The economic reforms (First Generation Reform) introduced the following policy changes :
- Delicensing : Industrial licensing system has been abolished for most of the industries.
- Dereservation : The industries which were exclusively reserved for the public sector were dereserved except for a few.
- Deregulation : The industrial laws like Monopolies and Restrictive Trade Practices (MRTP) Act were amended to ease restrictions on economic units.
- Disinvestment : The government proposed to sell the government equity (share capital) in certain public sector units (PSUs) to the private sector.
- Easing of trade barriers : The restriction on imports and exports were removed and tariffs were lowered.
- Encouragement to foreign capital and technology : Restriction on the operations of th(FERA) was relaxed to allow freer inflow of foreign investments.
- Taxation Reforms : The tax rates and tax slabs were rationalized, taxation system was simplified and the loopholes in the administration were plugged.
- Fiscal Reforms : The government proposed to reduce the non-plan expenditure in torder to reduce budgetary deficits.
- Banking Reforms : The interested rate structure was deregulated and greater autonomy was provided to the banks.
In our view, therefore, a strategy aiming at acceleration in the growth rate should provide for acceleration in agricultural growth not only because it is more consistent with reducing poverty and generation, income in rural areas, but also because it is more consistent with the likely constraints on export performance.