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TOWARDS SOCIAL TRANSFORMATION
APPROACH TO
THE EIGHTH FIVE YEAR PLAN
1990-95
MEETING OF THE
NATIONAL DEVELOPMENT COUNCIL
18-19 June 1990
PLANNING COMMISSION
GOVERNMENT OF INDIA
MAY 1990
Draft
TOWARDS SOCIAL TRANSFORMATION
APPROACH TO
THE EIGHTH FIVE YEAR PLAN
1990-95
MEETING OF THE
NATIONAL DEVELOPMENT COUNCIL
18-19 June 1990
PLANNING COMMISSION
GOVERNMENT OF INDIA
MAY 1990
Draft
CONTENTS
Page
I.
Introduction
..
1
II.
Reorientation
..
2
- The Need for Reorientation
..
- Objectives, Scope and Key Elements.
2
9
III. Right to Work
..
11
..
12
IV.
Rural Development
V.
Decentralisation and Integrated Area Planning
VI.
Agriculture
VII. Urban Poverty and Unemployment
Social
VIII.
14
..
19
..
23
27
Development
- Women and Development
- Other Vulnerable Groups
- Education
- Health
- Food and Social Security
..
..
..
. .
..
27
30
33
35
37
IX.
Population
..
39
X.
Science and Technology
..
41
XI.
Environment
..
43
XII. Industry: Policy and Priorities
..
45
XIII.Infrastructure
..
55
XIV. Fiscal Measures
..
58
Exports and International Trade Policy
61
ft
XV.
XVI. Summing Up
..
65
Draft
May, 1990
PLANNING COMMISSION
TOWARDS SOCIAL TRANSFORMATION
APPROACH TO THE EIGHTH FIVE YEAR PLAN, 1990-95
Introduction
people of India have once again shown great
democratic
awareness. They have signalled their powerful desire
for change.
The
Their mandate calls for an alernative model of development within
The kind of development
the
framework of national planning.
have
had has led to growing disparities and ineguities,
sense of injustice and oppression.
widespread
violence
This,
felt
a
has produced
in turn,
discontent and unrest that have fanned the forces
and
disorder.
Certain
sections
we
have
also
of
become
vulnerable to obscurantist, communal appeals. This has aggravated
in its wake, coercion by the state
the sense of frustration and,
apparatus.
Attention
engagement
in
a
to
glaring
rational
socio-economic
political
discourse
issues
to
and
resolve
outstanding problems have suffered in conseguence.
2.
There is urgent need to remove the sources of discontent and
unrest by attending to unemployment,
illiteracy,
ill-health and
decline in living conditions of the poor and vulnerable sections.
There
is egual need to create not merely a just social order but
also one that is perceived to be just.
Only on this basis can we
lay the foundations of peace and restore to the social fabric its
integrity and self-confidence.
3.
All
expressing
over the world the people are on
the
rise,
strongly
their democratic, aspirations and seeking a life
1
that
can
be
in
lived
security
peace,
and of the community.
individual
and
dignity
of
the
No society that harbours gross
inequalities
and deep schisms can meet these
development
strategy
basic
urges.
The
that seeks to respond to this urge in
the
context must go beyond declamations about
present
both
with
"growth
and processes have
to
to
adequate
justice".
The
explicitly
oriented
employment,
afford at least the minimum desirable requirement of
food,
clothing
4.
and
enabling
everyone
to
and have access
shelter,
have
be
educational,
and other related services.
development consists in mobilising the
skills,
and creative capabilities of the masses of the
people
Meaningful
strength
to
and
child care
health,
patterns
development
securing
their
The
participation.
active
reconstituted
Planning Commission has been reviewing the approach to the Eighth
Plan
from this viewpoint in full awareness that even after
four
the task of ensuring full employment
and
decades
even
of
planning,
a moderate minimum standard of living to
unfulfilled.
The
attainment
everyone
of these basic tasks must
remains
be
the
central concern of development strategy in the Nineties.
Reorientation
The Need for Reorientation
5.
In terms of the
overall growth rate, the performance of the
Indian economy in recent years is estimated to have substantially
improved and come close
this,
there
patterns
of
are
to the target envisaged. Notwithstanding
grounds
development.
for serious concern at
particular
of
following:
2
the
importance
emerging
are
the
been significant changes in the
There
have
GDP.
The large reduction in the share of the
of
structure
agricultural
sector has been accompanied by only a marginal reduction in
the
proportion
dependent
on
this
sector.
the disparities between agriculture and non
Consequently,
agriculture
people
of
in terms of output (and incomes)
sectors
per
head have widened.
has
There
between
been an
also
rural
accentuation
of
the
and urban areas and of disparities
parts of the country and also between
different
social groups,
dichotomy
between
different
wage labourers and property owners, workers
in organised and unorganised sectors, and men and women.
The near stagnation in the per capita availability even
in
basic consumer goods (such
as
statistical
terms
of most
foodgrains, sugar and gur and cot.ton cloth) relative to the
growth
the
of goods and services which figure
prominently
consumption of the relatively well-to-do
in
and
largely
Overall
employment has grown at a slower rate than
labour
force.
The
urban segments.
high and,
in some regions,
unemployment and underemployment;
if
not
declining,
rising
levels of
the persistence of
real wage rate;
low,
and the fact that
a
vast
majority of wage labourers in rural and
are
either
not
in practice get the minimum wages prescribed
and
the
helplessness and vulnerability of such people
in
the
absence of effective protection from trade unions
and
urban
areas
not covered by minimum wage legislation or
3
by
do
law;
local authorities.
v)
The progressive decline of employment in traditional crafts
and
industries, which have been a source of livelihood for
millions
to
share
people and have
of
and the
exports ;
policies
been
not
have
contributed
the
fact that
successful
significant
a
in
government's
fostering
their
growth.
vi)
The
failure
output,
of organised industries,
despite
growth
of
to provide additional employment commensurate with
investment;
the loss of thousands of jobs due to sickness
in industry;
and the reduction of employment opportunities
on account of inroads into the traditional labour-intensive
of production by more capital-intensive techniques
lines
(e.g.,cloth).
vii)
The
relatively
slow
growth
overall
agricultural
of
production and the fact that even this is concentrated
certain
parts of
country.
the
in
Over a sizeable part of
the country, agricultural output has not kept pace with the
growth in
viii)
The
population.
unacceptability
- from
the
social,
economic
and
ecological viewpoints - of the kind of consumption patterns
which have been encouraged by maldistribution of
income,
compounded
by recent policies on imports of technology and
components
and fiscal measures,
favouring the
growth
of
neglect
and
production of elitist consumer goods.
(ix)
Economic
growth
has
been
the
degradation
of
exploitation
of natural
accompanied
environment
resource base.
4
and
by
uncontrolled
The
(x)
failure
achieve a perceptive reduction
to
growth
population
rate
and
the
inadequacy
in
the
of
the
present strategies to contain the demographic pressures.
6.
new mandate rightly stresses the need to
The
correct
these
distortions and to reorient development policy in such a way that
it
gives primacy to the immediate and urgent needs of the
to all at minimum
namely,
employment
opportunities
access
to
means of livelihood
adequate
supplies of food,
wages
and
as
also
skills,
education, health and child-care services, and
basic necessities, such as housing. The guarantee of right
other
to
and
poor,
reserving
work,
benefit
at least half the public
produce goods and services for
to
for
the
and emphasis on village and small scale
of rural areas,
industries
outlays
mass
consumption
using labour-intensive techniques, reflect these concerns.
7.
The new approach envisages decentralisation of the planning
It
process.
reorientation of the focus and
involves not only a
priorities of planning, but also in its processes and mechanisms.
The process will be enriched and made more effective by involving
mass
the
of
planning
a
and
and
implementation
closer
institutions
of
agencies
will need
to
through
of
the
organisations.
The
association
Commission with the state planning
Planning
state
in
decentalisation
democratic
Planning
people
closely
with
democratic decentralisation in rural and
urban
give concrete shape and content to
this
interact
areas.
8.
In
attempting to
general approach,
reality
of
severe
it is,
however, essential to bear in mind the
internal and external
5
resource
constraints
arising from the following factors:
The
rate of domestic savings has not risen
overall
measure projected .
in
the
And, indeed, It might have declined. The
record in respect of public savings is particularly poor.
At
the beginning of the decade of eighties,
the States together had a surplus,
accounts.
revenue
this
But
the Centre and
even if modest,
on their
has
changed
situation
The
revenue account
went
and
the
magnitude
deficit
has
increased
progressively.
The
deficit of the Centre reached
Rs.12,436
dramatically.
1982-83
of
crores in 1989-90. The government is
into
borrowing
deficit
in
increasingly
amounts to meet even its current expenditure.
large
The credit system has been subject to strain owing to complex
rationing,
credit
administrative
differential
interest
rates
as
means of helping particular groups and,
an
more
importantly, owing to expansion in volume unrelated to actual
savings either by individuals or by the government.
The
public
enterprises
having
failed
to
use
resources
efficiently and to generate the expected (despite substantial
price
revisions for their products and services),
the
growth of public investment has had to be financed
moderate
mostly
even
through
from the
borrowings
public
and
from
the
Reserve Bank. Internal public debt has grown much faster than
projected.
This, together with the raising of interest rates
on market borrowing, has led to a phenomenal rise in interest
payments .
Most public programmes have failed to plug leakages and
waste. This has mounted avoidable pressure on resources.
6
on borrowings from the Reserve Bank
Dependence
reached
has
alarming proportions and the overall deficit of the Centre is
11,750 crores in 1989-90; about 16.5
estimated to exceed Rs.
per cent
of the
financed
in
Seventh
Plan public sector outlay has been
this manner as against 7.8 per
envisaged
cent
originally.
The large and growing volume of unaccounted money has created
a parallel economy outside of,
and inimical to, the planning
system.'
The position on the external account has also deteriorated:
9.
The deficit on the current account of the balance of payments
which
rose
billion
in
in the early Eighties
moderately
(from
1980-81 to $ 2.4 billion in 1984-85) has
$
2.1
nearly
doubled during the Seventh Plan.
Foreign
exchange reserves have declined sharply to a
over $ 3.3 billion (equivalent to about 7 weeks
little
imports)
at
the end of the Seventh Plan from $ 6.5 billion (equivalent to
20 weeks' imports) in the beginning of the Plan.
Foreign
indebtedness
dollars
and now exceeds around $ 58 billion
non-resident
having
has more than doubled (in terms of
deposits).
hardened,
The
of
terms
(inclusive
the
US
of
borrowings
the total debt service ratio is estimated
in 1989-90 to have risen-steeply to around 28 per cent of the
10.
been
current
receipts.
internal
and external,
The
danger
of
a
debt
trap,
both
is real.
The average rate of inflation over the last few years has
high,
particularly
for the common
7
people.
The
economy
cannot
take
further
aggravation
continued
of
large
deficit
and
inflationary
financing
without
of
payment
balance
pressures.
11.
Thus, we are not writing on a clean slate. The present state
of
the
and society being the result
economy
course of the development process,
in
particular
a
will take time to
it
So will the correction
characteristics.
basic
its
of
change
of
the
ecological damage and the erosion of the natural resource base of
Past decisions in respect of borrowing policy
the rural economy.
and
spending
government
resource
generation
being
payments
manoeuvre
claims on those
under such severe
the
stress,
necessary to undertake a clbse
balance
margin
for
This makes it all
scrutiny
to accommodate new commitments.
expenditures
for
resources
With the fiscal system and the
in the coming few years is limited.
more
the
implications
continuing
as also for the
for several years ahead.
of
have
of
existing
the
Accordingly,
emphasis has to be more on restructuring both economic priorities
and the pattern of spending as well as on
getting much more
out
/
of
what is spent
than on larger financial outlays.
The
public
need to be taken fully into confidence in articulating
will
the
rationale,
and
possibilities
the
processes
the
this
of
restructuring.
prevalent pattern of production and employment has to
12.
The
be
altered
priorities in respect
through changes in
investments.
A
accompanied
by
of
new
should
be
more direct measures to bring about a more
even
shift
in
investment
allocations
distribution of income across space and between classes.
also
be
necessary to restructure governmental
8
It will
institutions
to
objectives.
these
serve
determination
13.
to
this
All
calls
act along a number of fronts simultaneously.
The process of reshaping the economy must be
production
outlines
institutions
than others;
and
there
that
Keeping these considerations in
are
are
hard
view,
this
a new approach reflecting the aims and
new
Once
concerns
approach
is
sectoral allocations,
output targets
and
of
the Eighth Plan
be
elaborated
and
the Plan
document.
contained
in
the
accepted,
the
size,
dimensions
other
strategies,
some changes take a shorter time and/or are
accomplish
to
considered and
investment
that
income distribution and
that
choices to be made.
paper
awareness
patterns,
inter-related;
easier
full
in
implemented
political
for
mandate.
the
broad
will
presented
in
against
placing
these
aspects
and
emphasise
the need at this stage to focus attention
sharply
on
the
the "policy"
in
needed
to
correct
Without
clarity
targets
tend
and
however,
would,
importance
excessive
changes
We
on
"institutional"
the distortions and failures
the latter,
on
quantitative
of
caution
environment
the
past.
projections
to be mechanical and distract attention
from
and
the
more important issues.
Objectives, Scope and Key Elements
14.
The basic objective is to ensure that the needs of ordinary
people and the quality of their life become
planning
even
as
the
Plan
seeks
to
the central focus of
promote
rapid
development and diversification of the economy and to
the
infrastructural base.
primary
responsibility
Specifically,
the
strengthen
state must assume
to generate adequate employment
9
overall
in
the
and to ensure a basic standard of living to
economy
one,
every
specially the poor. The plans must also be sensitive to the needs
of ecologically sustainable development.
15.
A comprehensive,
use
of
physical,
human and financial
resources
different
at
of government and in the private sector is essential.
It
the task of planning to make sure that allocation and use
of
levels
is
integrated view of the economy and of the
resources reflect the overall social concerns and priorities in a
long term perspective. It should also monitor progress closely in
to signal deviation in performance from the plan
order
it occurs
whenever
and suggest corrective action.
16.
The process of planning and implementation will be
so
as
to
provide
This
mobilise
the
for
orgnisations , to articulate and
voluntary
needs.
scope
through
people,
run institutions of the local government as
democratically
as
greater
modified
press
will give them an opportunity and an
local
their
incentive
to
content
of
resources and shape the development
programmes to better serve these needs.
for
well
More generally the state
will
allow the skills and creative capabilities of the people in
all
sectors of the economy to be used without being ...fettered
by
irksome state controls. This process has to unfold itself.- within
a
framework
of
public
policy
and
a
system
of
federal,
decentralised institutions.
17.
The institutional changes.envisaged call for purposeful and
unrelenting efforts. Democratic decentralisation, which is at the
of
this,
will need to cover both political and
economic
processes.
This
will require political will as
also
sustained
It is well to
recognise
heart
pressure
from
people's organisations.
10
take time to take roots and further that
that all this will
the
pace is likely to vary from region to region.
Right to Work
right to work - which constitutes the centre piece
18.
The
the
reorientation
of
planning
part
of
- implies
full
a
of
employment
strategy.
As
undertake
to guarantee employment and to enforce minimum wage in
a
rural as well as urban
state
the
strategy,
The
areas.
on a sustained basis
aim
this
viable way to
should
achieve this
is to make sure that growth is widely
distributed acre js regions and sections of the population
and is
of a kind which can absorb the increases in the labour force
and
backlog of the unemployed in different parts of the country.
the
of people who participate but
numbers
Large
economic
activity
process.
Their
intermittently
the
are also an integral part of
status
as
"productive
in
productive
to
be
one
of
rural
areas.
The
is
smaller
in
The
problem
of
needs
workers"
explicitly recognised.
19.
In
terms
operational
the
problem is
tackling
underemployment and unemployment in
problem
exists
in
urban
magnitude
and
is
of a different
educated
rural
areas
also
primarily
but
character.
unemployed is prominent in urban areas.
areas
to
cities in
important
contributory
mitigated
by
search
of
factor to urban
Migration from
employment,
other
the
will
be
larger opportunities for gainful employment to
be
unemployment,
created in rural areas.
20.
to
For achieving full employment, the pattern of investment has
undergo substantial shifts from high capital/ labour
11
to
low
activities
capital/labour
of
and some high-tech
infrastructure, key intermediate manufactures
industries.
areas
in well-identified
except
are many sectors or sub-sectors in which
the
pattern of investment can be so reordered as to maximise the
use
There
of labour. Along with such policy changes a drastic restructuring
of decision-making and planning process in rural and urban areas,
with greater emphasis on area planning and creation of conditions
for
integrated and efficient implementation of such plans
also
be
called
To the extent and till
for.
employment generated through the normal
not
adequately
special
such
would
that
time
development process does
meet the requirements of those seeking
work,
a
progamme of guaranteed work to the unemployed
would
be
necessary.
Rural Development
21. Compared to urban areas, the rural areas,which contain three-
country's population,
fourth of the
income
have a much lower level
of
and consumption per head as well as much poorer access to
education, health, transport and other essential services. Rural-
urban
disparities
committed
therefore,
development.
crucial
seem
to
widening.
be
to
government
The
to giving much greater emphasis to
Restructuring
agrarian relationships
of
rural transformation.-
Steps will
be
is,
rural
will
be
initiated
to
review and reformulate the land legislations and ensure effective
implementation.
The
inclusion of land reform laws in the
Schedule
of the Constitution is a step in this
reforms
should encompass various aspects of land
such
as tenancy,
ceilings
and
homesteads,
consolidation of
direction.
Ninth
Land
relationships,
holdings,
land
distribution of surplus land including land at the
12
disposal of the government. The land so provided to the poor must
be
to
developed
the
owners
a
So far as tribal lands are concerned, there should
group basis.
prohibition
context
and
cultivation
to undertake various activities for cultivation on
encouraged
be
make it fit for
on its sale or transfer to non-tribals.
of land reforms,
In
the
proper maintenance and improvement
of
land records assume added importance.
envisaged that the proportion of
It
is
also
outlays
on
schemes
22.
benefiting the
significantly raised,
outlays
for agriculture
provide
inputs
and irrigation,
only
and roads,
but also
for
rural economy
(such
diesel
transport
and
the
investments
as
as also investments
infrastructure
facilitate
which
distribution of inputs and marketing of rural
to
fertilizers,
oil and electricity)
other
on
indutries,
village
hospitals
pesticides,
be
population include not
programmes
schools,
must
Investments
the
rural
population
rural
the target being 50 per cent.
benefiting
rural
development
produce.
in
better
Whatever
the inherent difficulties of estimating precisely how much of the
investment benefits the rural economy,
it is important to ensure
that the planning process results in the proportionate allocation
for
this purpose
levels.
In
the
being significantly increased over the present
process
must
care
be
taken
aggravation of inequalities within rural areas,
to
avoid
any
or of the rural-
urban dichotomy.
23.
While
greater investment of resources in rural development
programmes will help, far more important is a conscious effort to
gear such investment to expanding and diversifying the productive
13
base of the rural economy.
facilities
essential
for housing,
Investment must also help improve the
and
other
services which have a bearing on the quality of
life,
education,health,child care
on
the population growth rate
the
rural people.
as well as on the productivity of
The investment process has to be so
managed
that the growth of productive employment and incomes becomes much
more
widespread and diffused across regions.
and
stagnant regions must,
in
allocating
The needs of
poor
therefore, be given prior claim both
financial resources and
in
technical
providing
support.
A considerable amount of public resources is already being
24.
spent
on
a
variety
of
rural
development
and
anti-poverty
programmes.
But
compromised
by the fragmentation of
and overlap
among them;failure to relate programmes to needs and
their
are
impact and effectiveness
seriously
contradictions
programmes;
capabilities of particular regions; the almost exclusive reliance
on Central and State bureaucracies;
as
instruments
of
entrenched elites;
to
the use of these
political patronage;
their
programmes
pre-emption
by
and the pervasive leakages. These trends have
be reversed and distortions corrected.
What we need
only adequate financial resources but also a basic
is
not
reorientation
of the way the programmes are conceived, planned and implemented.
Decentralisation and Integrated Area Planning
25.
Many of the deficiencies of the existing programmes can be
corrected
by
responsibility
transferring
for
a
substantial
of
the
planning and implementation of economic
and
part
social development programmes (minor irrigation, soil ad moisture
conservation,
local
flood proofing
14
works,
primary
education,
health,
drinking water and
institutions
resources
of the
and
jurisdiction.
housing) to elected,
local government.
staff
the
should
representative
The necessary
be
brought
financial
their
under
Each village or block panchayat and district-level
institution will then have direct command over a sizeable
volume
of
finance and the freedom and flexibility to decide how best it
can
be
used for local development.
programmes
"schematic"
projects conceived centrally,
waste
rural
release
of
the stranglehold
development
from
would
This
standardised
as well as from
the
fragmented
and duplication inherent in the present highly
scheme-wise approach. The people of each local area, particularly
women,
be enabled to participate in the determination
will
to keep a check on the implementation of
priorities,
of
programmes
and maintain and manage the assets created.
26.
The local area plans at the vill'age or panchayat level will
first aim to expand employment,
economic activities.
female
workers
focus
would
relief work,
The
production and income in various
resources and
the skills of male
would be fully mobilised for this
be on ensuring socially gainful
work
and
purpose.
The
rather
than
which ad-hoc employment programmes often degenerate
into. The complexities of economic processes and the multiplicity
and time-profile of activities undertaken by poor households will
need
to
be
properly
employment-intensive
designing
and
operating
area development programmes.
An
important
appreciated in
objective
would be to strengthen and conserve local
resource
base which provide life-support (food,
fuel,
fibre,
skills
water,
and
fodder,
raw materials for artisans and building materials)
15
to the rural population, especially the poor.
27.
Planning on an area basis would also encompass the processes
of
rural-urban
vast
rural
hinterlands.lt must be recognised that the large number of
small
particularly
linkages,
the
in
towns are and should increasingly be linked with the neighbouring
villages in terms of provision of services and inputs on the
one
rural produce and providing employment
to
hand,
utilising
and
on the other.
workers from villages,
recognise
such
promote
of rural areas.
development
the
with
coordinated
continuum and
rural-urban
employment-oriented
Area plans must explicitly
balanced
a
They
policies for local industrial
must
be
other
and
promotional activities for economic diversification.
Ultimately,
28.
process
the
effective
only
if
accountable
to
the
done
people.
Panchayat
revitalising
is
it
Raj
can
local area planning
of
by
representatives
elected
Hence the
crucial
institutions
and
be
importance
making
of
periodic
elections to them mandatory. Equally important will be protection
against
intervention from higher levels of political
of
government
the
financial
bodies
and bureaucracy,
from
commercial
and
interests from outside.
In order to make the
elected
representative,
institutions
their
truly
these
and
should have adequate representation
management
committees
women
vulnerable sections of
and
and
leadership
society,
such
as
for
Scheduled
Castes and Scheduled Tribes. They should be endowed with adequate
responsibilities
to
enable them to function as units
of
self-
government, politically and economically.
29.
The
grassroot
process
activists
will
and
also call for active
involvement
voluntary
The
16
groups.
of
proposed
the
to
left
substantial
programmes is not
of rural development
restructuring
not even to elected
government alone,
contribution
will have to come from
to
be
bodies.
A
social
action
groups
and
people,
particularly with marginalised and deprived sections, so
organisations that are in constant touch
with
the
that the relevant institutions remain accountable and responsive.
The experience
30.
has
shown the potential of democratic
imparting
a new dynamism in rural areas:
Bengal,
for
in some States, including Karnataka and West
decentralisation
It has
generated
pressures for improvement in social services as in the working of
health centres.
and
schools
there
kind
of
the local
needs
and
their
priorities are actively discussed at
that
level.
And
projects
development
relative
Questions concerning the
are
relevant
to
several instances of substantial additional
resource
by Panchayats to implement projects they
consider
mobilisation
to be of
high priority.
Potentially this arrangement can
help
increase
the effectiveness of various programmes aimed at
women
and
children
- such
as
maternal and
child
health
services,
integrated child health services, adult education and nutrition by
conveying these services through a responsive
It
would
local
agency.
be necessary to ensure that that is sensitised to
the
needs of women, specially from the vulnerable groups.
31.
The
emphasis on local area planning implies a
significant
change in the role of higher level (State and Central government)
agencies
in relation to local development
involvement
plans.
Their
direct
in formulating and implementing such plans will need
to be drastically reduced. Instead they will have to give,or help
17
technical
secure,the necessary expertise and infrastructural and
evaluate
support;
the
emerging
experience;
and
facilitate
interaction among the local government institutions to learn from
other's
each
successes
failures.
and
Restructuring
and
reorienting the administrative system at different levels as well
as
re-training of the personnel to work in
would be essential.
tune with its
ethos
It will not be an easy task. There may be no
but there is already enough experience to guide
single solution,
these efforts.
32.
the
While
crucial,
of shifting over to integrated local area planning
process
not
decentralisation of government is
for
wait
elected bodies to be
in
place
need
everywhere.
The
rural
allocations for employment-oriented programmes [integrated
development
Centrally
programme
Sponsored schemes should be transferred to
condition
the
planning
they be spent specifically for
that
in rural areas.
selectively
funds
Jawahar Rozgar Yojana (JRY)]
(IRDP),
to
the
for schemes of high national
in turn,
on
area
local
importance
It should be further
and
ensured
transferred en-block by the States
Panchayat Raj institutions where they exist
are not in place
they
states
as
This will be subject to earmarking of
regular monitoring of performance.
that the funds are,
the
and,
where
to the District Rural Development
Agency
pending
the
frame,
not exceeding a year.
creation of elected bodies
within an
agreed
time
Decentralisation is pivotal to the
successful fulfilment of the strategy of full employment.
to ensure that a substantial part
33.
It is also necessary
the
resources for rural development are
bodies in an untied manner to enable them,
18
of
made available to local
along with
resources
mobilise themselves,
they
It is also equally
implementation of area development programmes.
important
higher
to
make sure that regions or districts which
have
of poor and the unemployed,
otherwise
concentration
backward
in indices of social development
and
resources
and
to undertake systematic planning
support.
arrangements
need
experience
of
to
The
decentralisation
and
worked
be
which
states
of
precise
out
have
get relatively
modalities
in
more
of
these
the
of
light
the
attempted
already
differential
or
such
allocation
resource
a
as
between blocks and districts.
34.
The emphasis on local area planning would mean that the
state/central
governments
will
socio-economic goals and overall priorities,
undertake
on
concentrate
broad
setting
devise policies and
programmes affecting more than one district or
state;
programmes which are part of large land,
water
coordination
of
and transport
projects; on compilation of data and evaluation of
and
experience;
on
research
and
training.
And
there
are,
importantly, the programmes for infrastrucuture (including power,
transport and major irrigation), industries, higher education and
training,
in
continue
to
important
which
the State Governents and
play a leading role.
for
sustained
the
Centre
These programmes are
industrialisation,
will
clearly
progressive
upgradation of technology and dispersal of economic activity.
Agriculture
35.
these
The
reorientation
lines
of rural development
programmes
should help in promoting a regionally
more
along
broad
based pattern of agricultural growth, that is, ending the neglect
19
of vast rainfed and dryland areas.
It provides the framework in
which local land and water development works,
programmes,
development
can
be planned
including watershed
and
implemented
more
effectively - a process which affords excellent opportunities for
involvement of technical and
creative
educational
organisations in the area.
voluntary
institutions
in
the
overall
growth rate of agriculture is essential for meeting
the
growing
needs
of food and fibre that the
development
strategy
oriented
to
the needs of the poor and the
unemployed
and
and
general increase in population would call.
also to step up agricultural exportrs.
output
will
resources
Acceleration.
It would be necessary
The required expansion in
need to be achieved through greater
being
attention
to the development of
devoted
the
and
tracts
rainfed
which constitute 70% of the country's culivated area; making much
more
effective use of irrigation facilities,
newly
created,
so
that
full
the
both existing
potentialities
for
and
yield
improvement can be realised; and maintaining a continuous flow of
economically
viable
improved
techniques,
specially
for
the
rainfed tracts. More effective institutions for proper management
of
land
planning
areas
and irrigation systems are essential.
agriculture in terms of
for
needs
concept
The
homogenous
agro-climatic
to be intensified and institutionalised in
such
manner that it serves at once as a source of expert guidance
local
planning
inter-related
of
and also as a framework for integration
activities of different agencies and in
of
<a
for
the
different
regions.
36.
Among the issues which need attention are:
the
adequacy
- in
of
terms
20
orientation,
resources
and
- of various research programmes especially in
results
to
rainfed
a
-
relation
agriculture;
assessment
critical
the
of
programmes
dryland
for
particularly in the light of the watershed projects
agriculture,
in the recent past;
taken
up
-
evolving
a more effective research and action strategy
for
these areas;
the
nature of the constraints on productivity growth
under
rainfed cultivation in relatively high rainfall areas; and
the performance of irrigated areas in terms of efficiency of
X
water use and growth in productivity.
-
37.
is essential to increase cropping intensity and
Irrigation
land productivity. It also adds substantially to rural employment
expansion
and
improvement
of
irrigation
opportunities.
The
facilities will,
therefore,
agricultural and
rural development programmes. During the Eighth
Plan,
a
continue to be a key ingredient
major effort will be made to restore and improve
irrigation
and
works
to encourage construction
of
of
minor
minor
new
works. In the case of major and medium projects, priority will be
given
speedy completion of on-going schemes rather than for
for
starting new ones;
created,
to speedier utilisation of potential
already
and for modernising existing systems. Conjuctive use of
ground water
with surface water needs to be encouraged. Measures
to
quality of water management,
improve
including more
active
farmer participation, will be intensified.
38.
There
is
need
to improve the delivery systems
for
farm
inputs including credit. The agricultural credit system has to be
21
and streamlined for extending timely
strengthened
and
to the farmer at reasonable rates of interest.
credit
adequate
The above
measures, together with more effective transfer of technology and
improved
rural
continue
will
infrastructure
to
be
the
key
elements of agricultural strategy. Attention needs to be given to
encouraging,
as
widely
as
agriculture
into
higher
value-adding
enterprises
- such
as
sericulture,, poultry,
Greater
efforts
diversification
possible,
be
remunerative
horticulture,
and animal husbandry.
dairying
at strengthening marketing and
facilities would be essential to support this
must
more
gardening,
market
fishery,
and
of
agro-processing
process.
Industry
encouraged to forge effective links with the large
and
growing agricultural economy. Environmental concerns will be kept
in
while
mind
plans
developing
agricultural/rural
for
The programmes must meet the conditions of economic
development.
viability as well as ecological soundness. Cost of administration
will need to be significantly brought down.
39.
In research,
greater thrust will be on the new,
research areas - such as biotechnology,
agricultural metereology
and
remote sensing - which offer great potential for
and
diversifying output,
Researchers
should
be
from
administrative
guided by the
value
the users ought to be made
costs
increasing
improving quality and reducing
research to the farmers and other clients,
feedback
emerging
and
costs.
relevance
of
and the mechanism for
more
efficient.
in research are now unacceptably
high
The
in
most research institutions. It is imperative that these costs are
brought down and research activities made more cost effective and
productivity-oriented.
22
40.
Agricultural price policy has a crucial bearing on farmers'
the incentives for adoption of improved technology
income and on
and increased production and rural capital formation.
Price
policy in the Eighth Plan will be informed by these concerns, and
in
particular
will
seek
to protect farmers
an adequate margin over costs;
and so to manage relative
will stimulate a more efficient use
prices
of resources and improve
the terms of trade in favour of the farmers.
export
price
wide
to ensure that the price which they receive leaves
fluctuations,
as
from
Greater freedom
to
will also be allowed so that the export-import policy
is
not biased against agricultural producers.
41.
The challenge of "right to work" cannot be met just with the
resources of the Central and State governments,
which are in any
case under great pressure. There is the need to create conditions
for
the
local
population
resources.
development
in each village
to
contribute
shows
that
an
Experience
to
important
incentive
is that local contributions are utilised entirely
palpably
for
the development of the contributors'
according
to
the
priorities set by them
This
alongwith an effective social audit will pave
supervision.
own
and under
and
village
their
own
the way for productivity rather than the mere size of expenditure
becoming
Panchayats
synonymous with development.
The existence of
responsive and responsible to the people
elected
will be
an
important first institutional step from this viewpoint.
Urban Poverty and Unemployment
42.
The magnitude of poverty and unemployment in urban areas may
seem small in comparison with that in rural areas.
phenomenon of the homeless,
However,
the
the slum and pavement dwellers,
and
the
fact that a significant proportion of the
are
educated,
present a special set of problems.
organised
and
unorganised
employment,
incomes
and
living
consciousness
of the difference is also increasing.
between
the
unemployed
urban
sectors
The
contrast
in
terms
is
conditions
and
stark
social
The
political tensions it generates are in some ways
and
of
much
more
acute.
In order to mitigate the growing rural-urban dichotomy
43.
to ease the social tensions associated with migration,
and
to arrest
the flight of skills from villages and taking note of the growing
urban
in
deficiencies
the
services and
basic
concentration of educated in the cities,
it is essential to check
the flow of unemployed from rural areas to big cities.
various
measures needed
for this purpose,
and
their
linkages
with
contiguous rural
areas
Among the
development
the
medium towns all over the country
small
heavy
already
and
of
strengthening
deserves
special
attention. Hundreds of such towns have been decaying from decades
of
Besides,
neglect.
enough
to serve the
a large number of villages have grown big
functions of small towns.
investment
comprehensive
marketing
programme
for
transport,
repair and technical services and in related training
activities
and
basic
and
A
minimum
improved
municipal
services
facilities,
- such
as
conservancy, potable water, drainage and housing - in these towns
has become urgent. Simultaneously, direct action for decongestion
of
metropolitan cities through appropriate industrial
policy
would
be
necessary.
All
this will help
to
dispersal
ease
pressure on large cities and promote more dispersed growth.
24
the
different
is necessary to address the housing needs of
It
44.
groups with special attention to the needs of the
income
poorer
sections, women and disadvantaged groups. This calls for steps to
expand
of
availability
materials
developed
land,
housing
finance
and
and scaling up proven technology for reducing costs of
construction and promoting the use of innovative materials. Steps
would be taken
sections
mobilisation
through
activities,
construction
houses
to encouarge construction of
of
profits
weaker
for
from
commercial
particularly in the cities.
There
is
significant employment potential in housing activity in itself as
as in its backward and forward linkages.
well
should
housing
The programme
cover training infrastructure for
promotion
of
of
skill upgradation and low cost technology using local resources.
The
45.
for the urban poor.
opportunities
the
is one of generating employment and
challenge
and
sector.
This
women
and self-employed
workers
transport.
public
in
the
on
and
casual
informal
offers an opportunity for improving the management
of basic services particularly shelter,
and
unemployed
ranging from the educated to the unskilled
underemployed,
labour
The strategy should focus
different sections of the urban
of
needs
income
water supply, sanitation
For this purpose the agenda
for
action
should include:
Cities
(i)
and
towns need competent
planning,
technical
and
management support services for integrated development.
As
(ii)
much
as
possible,
employment
generation
schemes,
particularly those providing services to households, must be made
to
yield some return on investment.
(iii)
The
activities
undertaken
25
should
include
those
which
provide
market
The
products.
should
plan
starting with the
improvement
of
village haats and shandies in small towns,
leading up
to
marketing network,
a
create
local
for rural
linkage
marketing estates with clusters of shops,
exhibition
area,
and
some residential space for artisans in or around towns of varying
sizes.
Low cost housing and sanitation programmes, including
(iv)
night
shelters.
(v)
Improvement
and
new housing
in existing houses,
related
especially for urban workers in the informal sector.
facilities,
The latter often need a combined living and working space as well
as
This will improve their
some common facilities and services.
living conditions and productivity. Housing-cum-work sheds should
be low-cost,
based on local materials and built with the
advice
and participation workers in the informal sector.
(vi)
Improvements
municipal
services
in
sanitation
and
essential
an integral part
of
the
scavenging,
should
be
urban
employment generation programme.
46.
The operational implications are:
(a)
The current institutional framework of municipal bodies
mainly towards control.
geared
and
Moreover,
expertise is not tailored to the
its
programmes
of the type outlined above.
is
the existing manpower
needs
of
employment
There should be a
clear
shift from control to promotion in the activities of town-bodies.
Development
should be
rather
than
curbs
initiative,
ensured through "facilitativc-planning" ,
the present "restrictive-planning"
leads
to speculation and
26
approach
generates
which
delays.
direct
will have to be the prime aim so as to
Deregulation
the
efforts of the municipal bodies more effectively towards reaching
goal.
this
Apart
de-regulation,
from
the
and
rules
laws,
governing town and municipal bodies would need to be
regulations
reformed suitably to provide for decentralisation of services
wards.
small
civic
Many
functions
can
be
in
with
implemented
effective participation of the citizens. This will help eliminate
delays
and
malpractices and consequently end the alienation
citizens from
(b)
in
civic bodies.
Urban self-employed should be helped to organise
order
to
of
upgrade their techniques,
get
themselves
better
access
to
working space, credit and marketing channels.
(c)
Public
facilities
the
institutions
and private industry
should
for training in skills needed for this
post-high
towards imparting vocational skills
education
In
purpose.
long run a major restructuring of high school and
school
provide
would
be
called for.
(d)
Discourage
expansion of the large metropolises and
conditions for the growth of small and medium towns.
create
This
would
serve the double purpose of easing the strain on the metropolises
and
of
fostering
decentralised urbanisation
and
a
healthier
pattern of rural-urban linkages.
Social Development
Women and Development
47.
Women constitute half the population and are critical to the
production
and
social
contribution
and
role
processes
in
of
the
the family as well
27
economy.
as
in
Their
economic
development and social transformation are pivotal. They have been
managing and supporting the survival systems, particularly in the
case of the poor households constituting about 30 per cent of the
population. The programmes for alleviation of poverty should thus
have a strong focus on development of women.
48.
In the Eighth Plan, women will be accorded a special role in
the
scheme
of decentralised area planning and
skills
local
towards
and resources.
universalisation
of
With this end
mobilisation
in
measures
view,
training
education,
of
skill
for
formation, provision of child care services and increasing access
to
assets and other resources will
productive
intensified.
producers of goods and services and as rightful
Their status as
social
claimants
of
Maximum
resources
productive
be
and
security will
will
creative
be
explicitly
be
directed
towards
recognised.
the
releasing
energies of rural women so
that
they
become equal partners in the socio-cultural transformation of our
society.
49.
Indiscriminate
use of science and technology has
in
many
cases added to the difficulties of women in protecting their jobs
and
incomes.
concepts
Our
of 'productivity'
be reviewed.
and
In the absence
'viability'
of
need
to
perception,
the
phenomenon of women from poor families
work in low paid jobs,
very often
to
conditions
tends to be extolled in a statistical sense
Increasing
participation
recognition
of
inhuman
as
'the
step
is
a
proper
its dimensions and contribution in the
Indian
the
of
being
under
compelled
understanding
proper
a
themselves
of
dignity
women'!
of
context.
28
women's
The
first
work
and
a
is necessary to address the housing needs of
It
44.
different
groups with special attention to the needs of the
income
poorer
sections, women and disadvantaged groups. This calls for steps to
expand
of
availability
land,
developed
housing
finance
and
and scaling up proven technology for reducing costs of
materials
construction and promoting the use of innovative materials. Steps
would be taken
sections
to encouarge construction of
through
mobilisation
activities,
construction
of
houses
profits
weaker
^or
commercial
from
particularly in the cities.
There
is
significant employment potential in housing activity in itself as
as in its backward and forward linkages.
well
housing
should
The programme
cover training infrastructure for
promotion
of
of
skill upgradation and low cost technology using local resources.
The
45.
opportunities
needs
the
is one of generating employment and
challenge
for the urban poor.
The strategy should focus
different sections of the urban
of
unemployed
underemployed, ranging from the educated to the unskilled
labour
and
sector.
This
women
and self-employed
workers
transport.
public
in
the’
on
and
casual
informal
offers an opportunity for improving the management
of basic services particularly shelter,
and
income
water supply, sanitation
For this purpose the agenda
for
action
should include:
Cities
(i)
and
towns need competent
planning,
technical
and
management support services for integrated development.
As
(ii)
much
as
possible,
employment
generation
schemes,
particularly those providing services to households, must be made
to
yield some return on investment.
(iii)
The
activities
undertaken
25
should
include
those
which
market
provide
The
products.
should
plan
starting with the
improvement
of
village haats and shandies in small towns,
leading up
to
create
local
for rural
linkage
marketing network,
a
marketing estates with clusters of shops,
exhibition
and
area,
some residential space for artisans in or around towns of varying
sizes.
Low cost housing and sanitation programmes, including
(iv)
night
shelters.
Improvement
(v)
in existing houses,
and
new housing
related
especially for urban workers in the informal sector.
facilities,
The latter often need a combined living and working space as well
as
This will improve their
some common facilities and services.
living conditions and productivity. Kousing-cum-work sheds should
be low-cost,
based on local materials and built with the
advice
and participation workers in the informal sector.
Improvements
(vi)
municipal
services
in
sanitation
and
essential
an integral part
of
the
scavenging,
should
be
urban
employment generation programme.
46.
The operational implications are:
(a)
The current institutional framework of municipal bodies
mainly towards control.
geared
and
its
Moreover,
expertise is not tailored to the
programmes
of the type outlined above.
is
the existing manpower
needs
of
employment
There should be a
clear
shift from control to promotion in the activities of town-bodies.
Development
should be
rather
than
the present "restrictive-planning"
curbs
initiative,
leads
ensured through "facilitative-planning",
to speculation and
26
approach
generates
which
delays.
will have to be the prime aim so as to
Deregulation
direct
the
efforts of the municipal bodies more effectively towards reaching
goal.
this
from
Apart
de-regulation,
the
rules
laws,
governing town and municipal bodies would need to be
regulations
reformed suitably to provide for decentralisation of services
wards.
small
and
Many
civic
functions
can
be
in
with
implemented
effective participation of the citizens. This will help eliminate
delays
and
malpractices and consequently end the alienation
citizens from
(b)
in
civic bodies.
themselves
Urban self-employed should be helped to organise
to
order
of
upgrade their techniques,
get
better
access
to
working space, credit and marketing channels.
(c)
Public
facilities
the
institutions
and private industry
should
for training in skills needed for this • purpose.
long run a major restructuring of high school and
school
provide
towards imparting vocational skills
education
In
post-high
would
be
called for.
(d)
Discourage
expansion of the large metropolises and
conditions for the growth of small and medium towns.
create
This
would
serve the double purpose of easing the strain on the metropolises
and
of
fostering
decentralised urbanisation
and
a
healthier
pattern of rural-urban linkages.
Social Development
Women and Development
47.
Women constitute half the population and are critical to the
production
and
social
contribution
and
role
processes
in
of
the
the family as well
27
economy.
as
in
Their
economic
development and social transformation are pivotal. They have been
managing and supporting the survival systems, particularly in the
case of the poor households constituting about 30 per cent of the
population. The programmes for alleviation of poverty should thus
have a strong focus on development of women.
48.
In the Eighth Plan, women will be accorded a special role in
the
scheme
of decentralised area planning and
skills
local
towards
and resources.
universalisation
of
in
With this end
measures
view,
training
education,
of
mobilisation
skill
for
formation, provision of child care services, and increasing access
to
assets and other resources will
productive
intensified.
producers of goods and services and as rightful
Their status as
social
claimants
of
Maximum
resources
productive
be
and
security will
will
creative
be
be
directed
explicitly
towards
recognised.
releasing
energies of rural women so
that
the
they
become equal partners in the socio-cultural transformation of our
society.
49.
Indiscriminate
use of science and technology has
in
many
cases added to the difficulties of women in protecting their jobs
and
incomes.
and
of 'productivity'
concepts
Our
be reviewed.
In the absence
'viability'
themselves
need
to
perception,
the
phenomenon of women from poor families
work in low paid jobs,
compelled
to
.conditions
tends to be extolled in a statistical sense
increasing
participation
recognition
of
understanding
women'!
being
inhuman
under
as
'the
step
is
a
proper
its dimensions and contribution in the
Indian
the
of
of
very often
proper
a
of
dignity
of
context.
28
women's
The
first
work
and
a
results
- of various research programmes especially in
rainfed
to
a
-
agriculture;
assessment
critical
of
the
programmes
dryland
for
particularly in the light of the watershed projects
agriculture,
taken
relation
in the recent past;
up
a more effective research and action strategy
evolving
for
these areas;
nature of the constraints on productivity growth
the
under
rainfed cultivation in relatively high rainfall areas; and
the performance of irrigated areas in terms of efficiency of
water
use
37.
Irrigation
and
growth
in
productivity.
is essential to increase cropping intensity and
land productivity. It also adds substantially to rural employment
improvement
opportunities.
The
facilities will,
therefore,
agricultural and
rural development programmes. During the Eighth
Plan,
a
expansion
and
of
irrigation
continue to be a key ingredient
of
major effort will be made to restore and improve
minor
new
minor
irrigation
works
and
to encourage construction
of
works. In the case of major and medium projects, priority will be
given
speedy completion of on-going schemes rather than for
for
startirt^ new ones;
created,
to speedier utilisation of potential
already
and for modernising existing systems. Conjuctive use of
ground water
with surface water needs to be encouraged. Measures
to
quality of water management,
improve
including more
active
farmer participation, will be intensified.
38.
There
is
need
to improve the delivery systems
inputs including credit. The agricultural credit
21
ror farm
?■
-ystem has to be
and streamlined for extending timely
strengthened
and
to the farmer at reasonable rates of interest.
credit
adequate
The above
measures, together with more effective transfer of technology and
improved
rural
infrastructure
continue
will
the
be
to
key
elements of agricultural strategy. Attention needs to be given to
encouraging,
as
widely
as
agriculture
into
higher
value-adding
enterprises
- such
as
sericulture,, poultry,
Greater
efforts
diversification
possible,
be
horticulture,
and animal husbandry.
dairying
at strengthening marketing and
facilities would be essential to support this
must
remunerative
more
gardening,
market
fishery,
and
of
agro-processing
Industry
process.
encouraged to forge effective links with the large
and
growing agricultural economy. Environmental concerns will be kept
in
while
mind
plans
developing
for
agricultural/rural
The programmes must meet the conditions of economic
development.
viability as well as ecological soundness. Cost of administration
Will need to be significantly brought down.
39.
In research,
research areas - such as biotechnology,
agricultural metereology
and
remote sensing - which offer great potential for
and
diversifying output,
Researchers
should
be
from
administrative
guided by the
value
the users ought to be made
costs
increasing
improving quality and reducing
research to the farmers and other clients,
feedback
emerging
greater thrust will be on the new,
and
costs.
relevance
of
and the mechanism for
more
efficient.
in research are now unacceptably
high
The
in
most research institutions. It is imperative that these costs are
brought down and research activities made more cost effective and
productivity-otiented.
22
40.
Agricultural price policy has a crucial bearing on farmers'
income and on
the incentives for adoption of improved technology
and increased production and rural capital
formation.
Price
policy in the Eighth Plan will be informed by these concerns, and
in
particular
will
seek
to protect farmers
an adequate margin over costs;
and so to manage relative
will stimulate a more efficient use
prices
of resources and improve
the terms of trade in favour of the farmers.
export
price
wide
to ensure that the price which they receive leaves
fluctuations,
as
from
Greater freedom
to
will also be allowed so that the export-import policy
is
not biased against agricultural producers.
41.
The challenge of "right to work" cannot be met just with the
resources of the Central and State governments,
which are in any
case under great pressure. There is the need to create conditions
for
the
local
population
resources.
development
in each village
to
contribute
shows
that
an
.Experience
to
important
incentive
is that local contributions are utilised entirely
palpably
for
the development of the contributors'
according
to
the
priorities set by them
This
alongwith an effective social audit will pave
supervision.
own
and under
and
village
their
own
the way for productivity rather than the mere size of expenditure
becoming
Panchayats
synonymous with development.
The existence of
responsive and responsible to the people
elected
will be
an
important first institutional step from this viewpoint.
Urban Poverty and Unemployment
42.
The magnitude of poverty and unemployment in urban areas may
seem small in comparison with that in rural areas.
phenomenon of the homeless,
However,
the
the slum and pavement dwellers,
and
23
the
fact that a significant proportion of the
are
educated,
between
employment,
present a special set of problems.
organised
the
* incomes
and
unorganised
and
living
sectors
The
contrast
in
terms
is
conditions
stark
of the difference is also increasing.
consciousness
of
and
social
The
political tensions it generates are in some ways
and
unemployed
urban
much
more
In order to mitigate the growing rural-urban dichotomy
and
acute.
43.
to arrest
to ease the social tensions associated with migration,
the flight of skills from villages and taking note of the growing
deficiencies
in
urban
services and
basic
the
heavy
already
concentration of educated in the cities, it is essential to check
the flow of unemployed from rural areas to big cities.
measures needed
various
for this purpose,
the
medium towns all over the country
small
and
their
linkages
with
contiguous rural
areas
Among the
development
and
of
strengthening
deserves
special
attention. Hundreds of such towns have been decaying from decades
of
neglect.
enough
Besides,
to serve the
a large number of villages have grown big
functions of small towns.
comprehensive
A
facilities,
programme
for
transport,
repair and technical services and in related training
activities
and
investment
basic
and
minimum
improved
municipal
marketing
services
- such
as
conservancy, potable water, drainage and housing - in these towns
has become urgent. Simultaneously, direct action for decongestion
of
metropolitan cities through appropriate industrial
policy
would
be
necessary.
All
this will help
to
dispersal
ease
pressure on large cities and promote more dispersed growth.
24
the
technological upgradation and ability to compete internationally.
The government's policy towards small scale industry - both
89.
traditional and modern - needs to be reviewed in the light of the
experience
the
of
industry,
least,
The
decades.
promotional
subsidies,
And
half-hearted.
even
measures
where
favouring
- ostensibly
say
the
promotional
and
been,
the
state
numerous
discrimination
fiscal
ensure a protected sphere have
to
designed
three
- reservations,
interventions
small
last
to
protective measures have been implemented, the benefits have been
cornered
intensive
(even - if
products
more capital
relatively modern,
by
e.g.,
decentralised)
cloth,
of
printing
and
units in a
fabrics,
labour
less
of
range
wide
food
footwear,
processing.
90.
policy of protecting small industry has resulted in
The
faster expansion of employment than would have occurred if
industry had been allowed to grow unfettered.
of
large
However, expansion
small industry (like powerlooms),
modern
a
has
insofar as it
been facilitated by fiscal and other concessions and diversion of
raw
materials
case
of
handlooms),
In
efficiency.
major
problem
future,
the
scale
meant for the traditional industries (as
in
the
was not sustained wholly on the basis
of
given that unemployment is
a
any case,
and
will continue to be so for
the
still
foreseeable
displacement of traditional industries on
cannot be accepted,
a
large
not even as an inevitable element
of
the transition to absorption in the modern sector, to the neglect
of
its
policy
immediate effect on employment.
to
A review of
ensure that protection meant for
industrial
traditional
labour
intensive industries is not abused by producers (large and small)
49
I
using
and
energy
techniques
capital intensive
synthetic
and
therefore, be high on the agenda. The policy
substitutes should,
of liberal support from financial institutions and government
using
enterprises
products of low social
manufacturing
for
capital intensive techniques
energy and
private
(e.g.,
priority
to
automobiles) needs review.
Macro
91.
decentralised
form
of
programmes
positive
industries.
to
policies
create an environment
manufacture
need to
of assistance and
be
favourable
to
reinforced
by
for
promotion
specific
The deskilling of craftsmen should be stopped. Those
already employed should be enabled to increase their productivity
and
by
giving them assured access to
as
also
incomes
materials,
adapting
technical
and
marketing
changing demand conditions.
to
and
raw
assistance
in
programmes
are
credit
These
unlikely to make much of an impact unless the practice of relying
exclusively
on government-dependent interventions is replaced by
participation of workers' associations or cooperatives.
92.
It is also necessary to take stock of the assistance needed
to
those who work only intermittently or work in the unorganised
sector.
There
dealing
with
produce,
be
a
is
large number of
corporations
and
Boards
leather
and
forest
to which the workers engaged in these activities
could
attached
activities like handicrafts,
in
an organised manner to avail
pertaining to production and marketing.
also
number
of
the
services
New organisations could
be created in such activities and occupations where a large
of workers are engaged on a
decentralised
basis.
This
would also facilitate representation of the "producers groups" in
50
the management of such organisations.
93.
arrangements will also make the process of collection
These
and use of data regarding unorganised workers easier.
We need to
develop a regular mechanism for collection of disaggregated
data
on a multi-dimensional basis, in the case of unorganised workers.
an approach to data collection should form an integral part
Such
of the decentralised planning system.
94.
One
important lesson to be drawn from past
that
the
growth of labour intensive industry cannot be
integrated
an
without
technology policy and fiscal policy.
shows
policy
Not
of
application
experience
ensured
industrial
policy,
The working of the
that these three elements were often in
only was there
no serious attempt
is
textile
conflict.
made to coordinate
them
in conceiving the policies to guard clearly stated objectives but
so
there was a great deal of laxity
also
in
the
implementing
policies, weakening their impact further.
95. A return to the regime of direct, indiscriminate and detailed
controls
in
industry
is
clearly out
of
the
experience has shown that such a control system is not
in
achieving the desired objectives.
abused
and leads to corruption,
effective
Also the system is
widely
delays and inefficiency.
It is
and determine the minimum
set
essential
to
objectives
and priorities which ought to be safeguarded
review
Past
guestion.
of
social
and
to
devise relatively simple, strategic and non-discretionary control
mechanisms to achieve these objectives.
In this context, devices,
96.
ratio
to
such as differential debt: equity
and other ways of influencing investment may not only help
channel
private
investment into areas of
51
mass
demand
and
labour intensive production but also to contain concentration
of
The state can and should use the sizeable equity
economic power.
holdings in the private corporate sector of development financial
institutions
to
influence
the long term policy
of
major
the
corporations in tune with national objectives. This presupposes a
the tenor of state - private sector relations with
change
in
greater
emphasis on evolving long term strategy
and
consultation
consciously
through
mutual
cooperation
the
enlisting
a
of
workers.
97.
In
relation
following
to the private sector the
specific
issues deserve attention:
(i)
policy of liberalisation during the past decade or
The
has given a fillip to industries.
led
to
the
But it has also in the process
rapid growth of some
industries
catering
relatively well-to-do segments of the population.
This has meant
of
scarce
necessary
to
restrain the growth of such manufactures not
of
because
their
to
sizeable demand
non-priority
for
imports
the
to
diversion
resources
so
uses.
is
It
only
(directly
and
indirectly), but also their wider social implications.
(ii)
is need for a greater degree of self-regulation
There
industry and trade in respect of quality control,
publication of data,
enforcement
help
to
collection and
of fair business practices and
the like through their own associations.
simplification
This,
together with
of systems of reporting to the government,
considerably
reduce the
of
of
burden
reporting
a
would
,
and
I
inspection
by
scores
of
officials
agencies.
52
from
several
regulatory
substantial
revitalisation
would
forests
potential would be a key element to
employment
of the rural economy.
the
Sustainable management
require an institutional
would
which
framework
of
facilitate people's active involvement. Traditionally, management
of
resources has sought to exclude the people,
forest
was
emphasis
on
the
policing
prevent
to
forests
and
the
biotic
interferences. Predictably, this did not have the desired effects
and has alienated the people.
respect
This has been particularly true in
the tribal populations who have
of
dependent on minor forest produce.
they have a national
Indeed,
Every effort needs to be made
to
grassroot level participation in this task as part of
a
interest
promote
traditionally
been
in protecting trees.
larger approach to the local area planning and development.
Industry: Policy and Priorities
the efforts to accelerate agricultural progress,
Alongside
81.
rapid industrialisation development will continue to be among the
concerns of planning.
major
of
The strategy
At the present stage
will have to sub-serve multiple objectives.
of
our
development,
rapid
increase
industrialisation
gainful
in
employment,
balanced regional growth,
sustained advance in productivity with
technological
and
dynamism,
competitiveness
machine
achievement
in selected sectors
building)
will
have
to be
(e.g.
the
of
international
steel,
electronics,
major
objectives
of
industrial policy.
82.
The
productive
industrial policy reforms will mobilise the
forces
and
entrepreneurial
energies
by
country's
reducing
bureaucratic controls. The emphasis will be more on strategic and
non-discretionary
instruments
of
45
regulation.Simultaneously,
level
will be initiated for progressively lowering the
measures
effective protection and increasing competitiveness of Indian
of
so that the consumer has access to goods of quality
industry
reasonable
prices.
regional
diversity
policies will take
into
account
the
resources endowment
and
provide
for
Our
in
at
balanced regional development. There will be special focus on the
development, of village and small scale industries.
continuing
A
effort will be made for technological upgradation.
83.
The economy must continue to devote adequate resources in
order
that
the
infrastructural
supply
of
transport
energy,
other
and
facilities as well as essential intermediate and
capital goods, grows in step with requirements. At the same time,
is necessary to encourage technological innovation to
it
quality
of
ensure
and cost effectiveness and to promote more efficient use
energy
and
other
resources.
Here
employment
not
need
necessarily be the primary consideration.
A substantial cost reduction in the intermediate and capital
84.
goods industries will have a powerful and wide ranging effect
competitiveness in all segments of
costs
and
This
calls
self-reliant
capability.
to
build
Indian
on
industry.
for a purposive and far-sighted policy to achieve
and
dynamic
technological
and
a
manufacturing
Import of know-how should be accompanied by measures
up
and utilise indigenous capability for
design
and
engineering as well as technological improvement. The formulation
of
a
long
term
action
programme
with
this
perspective
should,therefore, command a high priority.
85.
Another task is to explore and exploit systematically
46
the
potential
for
both
conserving
the
of
use
capital
scarce,
intensive intermediate inputs (especially energy, fertilizers and
for reducing the amount of additional investment needed.
metals)
there is considerable scope for reducing the
That
per
unit of output is well recognised.
for
raising the productivity of fertilizers and for
on the use of metals.
the
Programmes and
energy
Significant scope exists
economising
policies needed to exploit
for better economy and efficiency must
potential
input
be
given
precedence over launching of new projects.
Given the difficult balance of payments situation, it is
86.
necessary to improve the efficiency and competitiveness of Indian
industry for enhancing its contribution to exports and
efficient
import substitution. This would call for a greater thrust on:
(a)
the
upgrading
technological level of
basic
intermediate
goods and capital equipment;
(b)
the competitiveness of Indian industry
increasing
world
export market by providing access to relevant
in
the
technology,
equipment and materials; and
(c)
exposing
indigenous
concentration
to
there
where
external
competition,
degree
of
in ownership or monopolistic market structure
and
in
specially
producers
segments
is
a
high
labour intensive sectors is not
where production by small scale,
significant.
87.
The
thrust
on
employment and poverty
alleviation
will
generate additional demand for mass consumption goods, the supply
of
which-, must
encouragement
of
expand.
In
meeting
labour-intensive
this
requirement
forms of
manufacture
the
on
a
decentralised basis is possible. Many consumer goods (like cotton
47
cloth,
food,
processed
beverages) can be produced economically
using labour-intensive techniques and with savings in energy
capital.
In
industries which
assured
need
components.
manufacture the
supplies of
materials,
raw
and marketing facilities.
credit
cottage
that
cases this involves integration with
some
comparable
modern sector.
not better than,
if
to,
But the producers
on
inputs
their competitors
terms
in
the
There is also justification for selective subsidy
In-some cases it may
be appropriate to reserve production for the
allowing
sector,
components,
quality
get
to those using labour-intensive techniques.
even
larger
The policy should be to ensure
small scale producers
and
and
for the
existing
decentralised
large
capital-
be taken to ensure the spread of
industry,
and
backward
some
time
intensive forms to cater to export markets.
Measures
88.
particularly
areas.
A
must
of small-scale industries,
to rural
approach would recognise the
balanced
calling
existence
and
rationale
of
strategies.
The first and the foremost are the village/household
enterprises
including Khadi and village
handicrafts,
potential
and
three
sericulture
and
coir,
differentiated
for
industries,
which
have
handlooms,
tremendous
in terms of utilisation of local resources and skills,
creation
of
gainful employment
dislocation.
minimal
sub-sets
with
low
investment
and
The second category pertains to the 'tiny'
sector that accounts for majority of the units in the small scale
sector
and which has shown its capability to promote growth
and
employment generation. The modern small scale sector is the third
category.
It
has
the
proven
48
potential
for
dynamic
growth,
employment
substantial
potential would be a key element to
the
Sustainable management
of
revitalisation
of the rural economy.
forests
require an institutional
would
framework
would
which
facilitate people's active involvement. Traditionally, management
of
forest
resources has sought to exclude the people,
emphasis
was
on
the
policing
forests
to
and
prevent
the
biotic
interferences. Predictably, this did not have the desired effects
This has been particularly true in
and has alienated the people.
the tribal populations who have
of
respect
dependent on minor forest produce.
Indeed,
they have a national
Every effort needs to be made
to
grassroot level participation in this task as part of
a
in protecting trees.
interest
promote
traditionally
been
larger approach to the local area planning and development.
Industry: Policy and Priorities
81.
the efforts to accelerate agricultural progress,
Alongside
rapid industrialisation development will continue to be among the
concerns of planning.
major
The strategy
of
At the present stage
will have to sub-serve multiple objectives.
of
our
development,
rapid
balanced regional growth,
technological
dynamism,
competitiveness
machine
sustained advance in productivity with
and
achievement
in selected sectors
building)
will
employment,
gainful
in
increase
industrialisation
have
to be
(e.g.
the
of
international
steel,
electronics,
major
objectives
of
industrial policy.
82.
The
productive
industrial policy reforms will mobilise the
country's
entrepreneurial
reducing
forces
and
energies
by
bureaucratic controls. The emphasis will be more on strategic and
non-discretionary
instruments
of
45
regulation.Simultaneously,
will be initiated for progressively lowering the
measures
of
level
effective protection and increasing competitiveness of Indian
so that the consumer has access to goods of quality
industry
reasonable
prices.
regional
diversity
policies will take
into
account
the
resources endowment
and
provide
for
Our
in
at
balanced regional development. There will be special focus on the
development of village and small scale industries.
A
continuing
effort will be made for technological upgradation.
83.
The economy must continue to devote adequate resources in
order
that
the
infrastructural
supply
of
transport
energy,
other
and
facilities as well as essential intermediate and
capital goods, grows in step with requirements. At the same time,
it
is necessary to encourage technological innovation to
quality
of
ensure
and cost effectiveness and to promote more efficient use
energy
and
other
resources.
Here
not
need
employment
necessarily be the primary consideration.
A substantial cost reduction in the intermediate and capital
84.
goods industries will have a powerful and wide ranging effect
costs
and
competitiveness in all segments of
This
calls
self-reliant
build
industry.
for a purposive and far-sighted policy to achieve
and
dynamic
technological
and
a
manufacturing
Import of know-how should be accompanied by measures
capability.
to
Indian
on
up
and utilise indigenous capability for
design
and
engineering as well as technological improvement. The formulation
of
a
long
term
action
programme
with
this
perspective
should,therefore, command a high priority.
85.
Another task is to explore and exploit systematically
46
the
potential
for
both
conserving
use
the
of
intensive intermediate inputs (especially energy,
fertilizers and
for reducing the amount of additional investment needed.
metals)
That
there is considerable scope for reducing the
per
unit of output is well recognised.
for
raising the productivity of fertilizers and for
on the use of metals.
the
capital
scarce,
potential
input
energy
Significant scope exists
economising
policies needed to exploit
Programmes and
be
for better economy and efficiency must
given
precedence over launching of new projects.
86.
Given the difficult balance of payments situation,
it is
necessary to improve the efficiency and competitiveness of Indian
efficient
industry for enhancing its contribution to exports and
import substitution. This would call for a greater thrust on:
(a)
upgrading
the
technological level of
basic
intermediate
goods and capital equipment;
(b)
world
the competitiveness of Indian industry
increasing
export market by providing access to relevant
in
the
technology,
equipment and materials; and
(c)
exposing
specially
indigenous
to
external
competition,
degree
of
in ownership or monopolistic market structure
and
segments
in
concentration
producers
there
where
where production by small scale,
is
a
high
labour intensive sectors is not
significant.
87.
The
thrust
on
employment and poverty
alleviation
will
generate additional demand for mass consumption goods, the supply
of
which', must
encouragement
of
expand.
In
this
requirement
forms of
manufacture
meeting
labour-intensive
the
on
a
decentralised basis is possible. Many consumer goods (like cotton
47
processed
cloth,
beverages) can be produced economically
food,
using labour-intensive techniques and with savings in energy
capital.
In
manufacture the
industries which
assured
need
credit
that
cases this involves integration with
some
supplies of
raw
materials,
comparable
small scale producers
and
modern sector.
not better than,
if
to,
But the producers
inputs
terms
on
their competitors
in
the
There is also justification for selective subsidy
In some cases it may
be appropriate to reserve production for the
sector,
components,
quality
get
to those using labour-intensive techniques.
even
larger
The policy should be to ensure
and marketing facilities.
cottage
components.
and
some
allowing
existing
for the
decentralised
large
capital-
be taken to ensure the spread of
industry,
and
backward
time
intensive forms to cater to export markets.
Measures
88.
particularly
areas.
A
must
of small-scale industries,
to rural
approach would recognise the
balanced
sub-sets
existence
and
rationale
of
strategies.
The first and the foremost are the village/household
enterprises
including Khadi and village
handicrafts,
potential
and
sericulture
and
calling
coir,
differentiated
for
industries,
which
have
handlooms,
tremendous
in terms of utilisation of local resources and skills,
creation
minimal
three
of
gainful employment
dislocation.
with
low
investment
and
The second category pertains to the 'tiny'
sector that accounts for majority of the units in the small scale
sector
and which has shown its capability to promote growth
and
employment generation. The modern small scale sector is the third
category.
It
has
the
proven
potential
48
for
dynamic
growth,
technological upgradation and ability to compete internationally.
The government's policy towards small scale industry - both
89.
traditional and modern - needs to be reviewed in the light of the
experience
the
of
interventions
small
last
three
- reservations,
fiscal
subsidies,
promotional
industry,
The
decades.
measures
to
least,
half-hearted.
And
where
even
been,
the
state
favouring
discrimination
ensure a protected sphere have
designed
numerous
- ostensibly
say
the
promotional
and
to
protective measures have been implemented, the benefits have been
by
cornered
intensive
relatively modern,
(even
e.g.,
products
if
and
more capital
decentralised)
units in a
printing
fabrics,
cloth,
of
labour
less
wide
of
range
footwear,
food
processing.
policy of protecting small industry has resulted in
The
90.
faster expansion of employment than would have occurred if
industry had been allowed to grow unfettered.
of
large
However, expansion
insofar as it
small industry (like powerlooms),
modern
a
has
been facilitated by fiscal and other concessions and diversion of
raw
materials
case
of
handlooms),
efficiency.
In
major
problem
future,
the
scale
meant for the traditional industries (as
in
the
was not sustained wholly on the basis
of
given that unemployment is
a
any case,
and
will continue to be so for
the
still
foreseeable
displacement of traditional industries on
cannot be accepted,
a
large
not even as an inevitable element
of
the transition to absorption in the modern sector, to the neglect
of
its
policy
immediate effect on employment.
to
A review of
ensure that protection meant for
industrial
traditional
labour
intensive industries is not abused by producers (large and small)
49
using
energy
techniques
capital intensive
and
and
synthetic
therefore, be high on the agenda. The policy
substitutes should,
of liberal support from financial institutions and government
to
capital intensive techniques
for
enterprises
products of low social
manufacturing
automobiles)
Macro
91.
to
policies
of
form
create an environment
manufacture
need to
of assistance and
programmes
industries.
private
(e.g.,
priority
needs review.
decentralised
positive
energy and
using
be
favourable
to
reinforced
by
for
promotion
specific
The deskilling of craftsmen should be stopped. Those
already employed should be enabled to increase their productivity
and
by
giving them assured access to
as
also
incomes
materials,
adapting
technical
and
marketing
changing demand conditions.
to
and
raw
assistance
in
programmes
are
credit
These
unlikely to make much of an impact unless the practice of relying
exclusively
on government-dependent interventions is replaced by
participation of workers' associations or cooperatives.
92.
It is also necessary to take stock of the assistance needed
to
those who work only intermittently or work in the unorganised
sector.
There
dealing
with
produce,
be
is
a
large number of
corporations
and
Boards
leather
and
forest
to which the workers engaged in these activities
could
attached
activities like handicrafts,
in
an organised manner to avail
pertaining to production and marketing.
also
number
of
the
services
New organisations could
be created in such activities and occupations where a large
of workers are engaged on a
decentralised
basis.
This
would also facilitate representation of the "producers groups" in
50
the management of such organisations.
arrangements will also make the process of collection
These
93.
and use of data regarding unorganised workers easier.
We need to
develop a regular mechanism for collection of disaggregated
data
on a multi-dimensional basis, in the case of unorganised workers.
an approach to data collection should form an integral part
Such
of the decentralised planning system.
94.
One
important lesson to be drawn from past
that
the
growth of labour intensive industry cannot be
without
integrated
an
technology policy and fiscal policy.
policy
shows
policy,
The working of the
no serious attempt
is
ensured
industrial
that these three elements were often in
only was there
Not
of
application
experience
textile
conflict.
made to coordinate
them
in conceiving the policies to guard clearly stated objectives but
so
also
there was a great deal of laxity
in
the
implementing
policies, weakening their impact further.
95. A return to the regime of direct,
industry
in
controls
is
indiscriminate and detailed
clearly out
of
the
question.
experience has shown that such a control system is not
in
and leads to corruption,
review
effective
Also the system is
widely
delays and inefficiency.
It is
achieving the desired objectives.
abused
Past
and determine the minimum
set
of
essential
to
objectives
and priorities which ought to be safeguarded
social
and
to
devise relatively simple, strategic and non-discretionary control
mechanisms to achieve these objectives.
In this context, devices,
96.
ratio
to
such as differential debt: equity
and other ways of influencing investment may not only help
channel
private
investment into areas of
mass
demand
and
labour intensive production but also to contain concentration
of
The state can and should use the sizeable equity
economic power.
holdings in the private corporate sector of development financial
influence
to
institutions
the long texrm policy
of
the
major
corporations in tune with national objectives. This presupposes a
the tenor of state - private sector relations with
change
in
greater
emphasis on evolving long term strategy
consultation
and
consciously
mutual
through
of
cooperation
the
enlisting
a
workers.
97.
In
relation
following
to the private sector the
specific
issues desexrve attention:
(i)
policy of liberalisation during the past decade or
The
But it has also in the process
has given a fillip to industries.
led
to
rapid growth of some
the
so
industries
catering
to
the
relatively well-to-do segments of the population.
This has meant
diversion
of
scarce
uses.
necessary
to
restrain the growth of such manufactures not
only
(directly
and
because
of
their
resources
to
sizeable demand
non-priority
imports
for
It
is
indirectly), but also their wider social implications.
(ii)
There
is need for a greater degree of self-regulation
industry and trade in respect of quality control,
publication of data,
enforcement
help
to
inspection
This,
together with
scores
reduce the
of
burden
officials
agencies.
52
from
of
reporting
several
a
would
of systems of reporting to the government,
considerably
by
collection and
of fair business practices and
the like through their own associations.
simplification
of
,
and
regulatory
(iii)
Seventies
The
and
Eighties
have
increasing
witnessed
These are
incidence of sickness among industrial enterprises.
a
on the economy and the resources required for
development.
Wherever possible, it is obviously desirable to help
revive si^k
drag
and
units
the
Provision
state.
should be made for
or
viable
resources
legitimately claim continued support by way of
cannot
from
modernisation
through
units which are unlikely to become
But
diversification.
viable
them
make
and
retraining
deployment of labour.
Imported technology does have an important role to play
(iv)
in the modernisation of industries and raising their
the import of technology must be planned in a long term
However,
focussing
perspective,
to
efficiency.
the
capability
on strategic sectors and with due regard
to
adapt
absorb,
and
develop
technology
indigenously.
(v)
Fdreign
capital
has also a role to play as
a
medium
for
bringing in better!technology, even if the quantum is unlikely to
be large in relation to the size of the balance of payments gap.
There has to be a special thrust for export production.
(vi)
exports
Indian
late,
of
manufactures
have
shown
Of
welcome
resurgence. Exports have grown significantly in sectors which are
labour
intensive,
and where the value added in
manufacture
is
also significant. Even in sophisticated fields, as for example in
the
area
of
"software",
our scientific personnel
have
shown
commendable performance. All such exports - not only of goods but
increasingly,
attention.
the
of
business services - need to be
Being generally labour intensive,
given
special
they fit well with
employment-centred strategy and some of them (like software)
53
may also mitigate the problem of urban educated unemployment.
98.
The other major aspect of policy concerns the role of public
sector both in terms of its sphere of direct involvement and
the
which government influences the patterns of growth
in
means
the
by
private sector.
role in the economy.
leading
will
The public sector will continue to
At this stage in
to focus on the development
need
intermediate
production
goods,
of
play
a
development,
it
infrastructure,
key
of
and distribution
strategic
commodities and provision of social services. However, the public
sector has of late entered numerous other areas of activity where
its presence is not necessary to promote self-sustained growth of
the economy, or to serve any essential social purpose. Such areas
be left to the private sector which has lately shown both
should
the
entrepreneurial
financial
resources
situations
where
participation
the
capacity
to
mobilise
a large scale.
Indeed
there
may
be
involvement
or
ability
on
greater
and
private
sector
in areas hitherto largely retained with the public
sector could be considered on a selective basis.
The offering of
shares of public enerprises to the workers and the public,
while
retaining government control, could be considered as a measure of
raising resources and improving performance.
99.
At
the
efficiency
same
time,
it is necessary
of public enterprises.
to
ensure
An accountable management
it must have the autonomy to
ensure
essential
but
consistent
with
evaluation
and execution must be clearly delineated
enforced.
Special
accountability.
Responsibility
attention will be given to
54
greater
for
is
achievement
planning,
and
firmly
ensuring
timely
of
completion
projects
and
be
fixed
will
Responsibility
avoiding
on
the
cost
for
this
management
relations
must
overstaffing.
Labour
participation
and concern for productivity.
for
efficiency
public
of
be
prevent
based
on
These
perequisites
are
enterprises
and reiterated on several occasions.
recognised
runs.
policies need major reorientation to
purpose.Personnel
improving
over
worker
widely
What we need is
the will to implement them firmly.
Infrastructure
100.
The development programmes for both agriculture and industry
will
need
to
supported by improvement
be
infrastructural
in
the
particularly energy and
facilities,
supply
transport.
These two sectors are also among the most capital intensive,
the
public
sector
plays
a major
role
in
both.
of
Given
and
the
commitment
to
increase the share of public sector plan
outlays
allocated
for
rural
resource
constraint,
it is imperative that policy in these sectors focuses
more
as
development
and
the
overall
sharply on modernisation and economic expansion of
well
better demand management so as
as
to
supply,
encourage
more
improvement
of
efficient use of energy and transport.
101.
It
is,therefore,necessary to focus on the
efficiency of these services and to evolve a pattern
operational
of pricing which would yield a reasonable return on investment in
Except for oil,
these sectors.
the public enterprises in
sector do not as of now earn a reasonable return,
incurring
current
prospect
large
losses,
operations.
for
mobilishing
or are in fact
even
for
remedied,
the
requiring budgetary support
Unless
this situation
resources to
55
is
su'stain
this
even
moderate
of public investment on a non-inflationary basis would
expansion
be in jeopardy.
of
substantial
increase
domestic production.
and
the country is faced with the prospect
In the case of oil,
102.
oil
products,
generation
an
despite
in imports,
increase
in
Measures to reduce the consumption of
oil
to
increase the fuel
efficiency
and in road and rail transport,
power
and introduction
of
in respect of
energy efficient production technology (e.g.
more
of
A long term policy for
fertilisers) must be pursued vigorously.
optimal management of both demand and supply of different sources
energy (including renewable sources of energy)
of
is
essential,
if only to ensure sustained development in the coming decades.
Apart from the above general policy considerations,
103.
it is
necessary
to take note of certain specific issues that call
attention
in
These include
the Eighth Plan period.
for
for
the
energy sector:
by
an
backed
effective system of incentives and disincentives
legislative
mandate
for
energy
of
generating
conservation,
and
waste
reduction among all users;
-
better
utilisation
capacity
by
selective
modernisation of existing generating units;
-
more
rational
use of power in order to
the
load
capacity
and
flatten
curve and to reduce the peak demand for power;
-
a
better
balance
between power
generating
transmission and distribution system;
-
speedy
completion
of
on-going
projects
streamlined approval system for new projects,
56
and
a
more
in view of the long
lead time required for such projects;
sustained
improvement
the managerial capacity
in
of
the
State Electricity Boards;
selective
private
entry
of
policy
that
investment
for
capacity
augmentation;
pricing
a
of
forms
alternative
reflects
energy
and
relative
scarcities
of
improves
viability
of
investments;
-
the output per worker and better utilisation of
improvement
equipment in the coal sector, which will remain a major source of
commercial energy;
due regard to the long term ecological aspects of energy use
and
devise
environmental
appropriate
and
safeguards
demand
management for this purpose; and
and
coordination
of diverse policy options,
operational
systems of alternative sources
investment phasing
energy
of
and
their competitive uses.
In the transport sector,the railway network will need to be
104.
augmented
of
and modernised to carry a substantially larger
passenger
both
combination
of
and
freight
traffic.
various modes of transport,
In
any
volume
optimal
railways have
some
clear advantages in terms of energy efficiency for bulk transport
over
traffic
both
distances,
long
in
as also mass
and around major cities.
of
commuter
The employment
potential
trasportation
during construction and in operation is also
However,
capital
utmost
efficiency
in
railway
network
needs
The
ineed
for
construction and
operation
of
the
particularly
emphasised
in
the
costs are; increasing rapidly.
the
considerable.
to be
57
context
of
the
investment.
It
constraints
on
the
resources
is also necessary to devise a fare and
freight
which makes investment viable without proving a
structure
for
available
drain
on the fiscal system.
105.
The same considerations will apply in regard to expansion of
road
transport and shipping.
The road network is necessary for
up rural countryside and for better integration
opening
the
rural and the urban economy.
road
construction
in
particularly
in
system,
expanded
be
part of the larger policy for discouraging
as
improved
The public transport
would need to
major cities,
potential
The employment
is also high.
between
and
private
transport in the interest of better energy conservation.
Fiscal Measures
106.
proposed
The
reorientation of the rural
development
and
planning in so far as it succeeds in promoting more efficient use
of available real and financial resources could, over a period of
time,
ease the strain on the fiscal
help
productivity
of
conservation,
for instance,
needed
to
meet
possibilities
in
fertilisers
the
Raising
system.
and
agriculture
energy
will reduce the additional capacity
given overall growth
targets.
Exploiting
for raising output through better use of
the
existing
facilities will reduce the additional investments needed to
a
demand.
given
Decentralisation of the type envisaged
meet
should
help reduce leakages and enable employment and welfare programmes
to
be
meant.
responsive
to real needs of the people for
whom
it
is
All this means that the real targets of the plan, or more
accurately
of
the
public sector plan,
58
can
be
achieved
with
relatively smaller outlays than would be required if the existing
approach were to continue.
This is only a part of the solution to the fiscal
107.
crunch
which has already assumed serious dimensions and threatens to get
much worse unless determined and timely action is taken to reduce
improve
expenditures,
non-development
administration,
and
policy
tax
reasonable
public enterprises earn a
make
and
return on investments.
108.
The
important issues in a serious agenda
more
fiscal
of
reform must include:
-
Ways to extend the coverage of,
the
effectiveness of tax collection,
Simpler
tax
exemptions,together
with
taxes.
free of outside
The
especially of direct
laws
without
an efficient
tax
numerous
administration
interference, are essential.
deterioration
significant
increase
and substantially
in the revenue budget which
part due to the rapid rise
in
is in
some
administrative
and non-development expenditures, and which also adds to the
strain on the balance of payments,
-
Strict
monitoring
needs to be arrested.
and control of non-Plan expenditure
has
become urgent and imperative. The aim should be to eliminate
contain its growth and prevent
and waste,
leakage
proliferation of staff.
safeguard
cost.
proper
Maintenance
At the same time it is necessary to
maintenance of assets
created
at
great
has indeed suffered in the past owing to
the expenditure being classified as
distinctions
further
between
'non-Plan'.
Artificial
Plan and non-Plan expenditurre
owe their origin to an accounting rather than a
59
which
functional
view need to be discarded.
Part
reason for the
the
of
the
of
worsening
budgetary
situation is the rapid growth of internal public debt
and
the
increase
and
the
use of such borrowings increasingly to
deficits.
in the
The
interest
rate
borrowings,
on
policy
of
requiring
open
market is a
enterprises
to
in
the
not
ease
float
bonds
in
the
right
direction.
But
this
alone
will
the
budget
unless
the
the
burden
on
revenue
meet
step
enterprises
also become more efficient and are able to cover their costs
fully. If they do not, the budget has eventually to meet the
deficit.
Also,
implies
a steep rise in cost of borrowing,
the growing
tax
recourse to
a
free bonds
part
it
of
being borne by the budget in the form of forgone tax revenues.
There is a strong case for divesting the public sector of
losing
chronically
providing
of
segments/regions
of
the
no
essential
subsidised
services
to
particular
on larger social grounds from the
enterprise
Details of
which serve
It would be necessary to separate out the
national purpose.
cost
enterprises
operations
more
strictly
results
defined.
such imposed obligations which are ultimately
met by the Government should be made explicit to the
along
Discussions
obvious
and
necessary
with
on
subsidies
justification.
usually focus on only
and explicit items - especially
exports.
much larger.
public
food,
the
most
fertilisers
But the subsidy element in public finance
is
A significant part of it is hidden in the form
60
providing
of
education
other public services
and
much
to those who have no claim to it;
even
higher
electricity,
irrigation,
below the cost of borrowing;
general
below
or lending at rates
non-recovery of loans and
and
from borrowers.
The magnitude of
interest
payments
relative
to
growing.
It is necessary to take a broad view of the
resources available has become large
these
and
is
whole
and
to quantify their magnitude,
of subsidies,
issue
cost,
see
which sections/classes/regions benefit from them and in what
measure.
is
This
for
essential
significant
a
of policy based on an informed discussion of
reorientation
their rationale.
Exports and International Trade Policy
109.
mounting fiscal deficits and their effect on aggregate
The
part of the reason for the pressure
are
demand
payments.
Sharp
reduction
in
deterioration
in
net
concessional borrowing,
on
balance
invisible
earnings,
and some upsurge in
imports
have contributed to this process.
related
to
Increase
in
of non-essential consumption
production
added to the pressure on imports.
of
bulk
imports
goods
has
Prudence requires that further
increases in foreign borrowings, especially the recourse to loans
of shorter maturity and on harder terms,
and
steps
pipeline
taken
(which
to accelerate the utilisation of
is
on
much
softer
severely
be restrained
terms).
aid
The
in
the
thrust
of
liberalisation should also shift towards improving the technology
and
which
efficiency of the intermediate and capital goods industries,
is
desirable from every point of view reducing
domestic manufacture,
costs
of
increasing the competitiveness of domestic
61
industry on a wider range than at present,
and building the base
for greater self-reliance.
rate of growth in export earnings in recent years
110.
The
per
cent in dollar terms and 11 per cent per annum during
90) has been impressive.
to
1986-
But it has to be stepped up even higher
bring down the BOP deficit to manageable levels.
expand
(17
Efforts
diversify exports both by products and markets
and
to
must
continue.
111.
The strategy for export growth would include:
greater
(i)
attention
to expanding
of
exports
labour-
intensive
manufctures which have emerged as dynamic elements
our trade.
At the same time, diversification
in
into a wider range
of products such as software and other skill-based services;
strengthening
(ii)
exports
such
as
of
Export
institutional
Houses,
Export
specialisation
in both products and selected
modernisation
of
other
trade
infrastructure
Promotion
Councils,
markets;
promotional
for
as
also
institutions
and
elimination of procedural bottlenecks;
(iii)
rationalisation of incentives, speedy delivery of raw
materials,
equipment
production
- be they indigenous or imported,
and
components,
related
to
export
and promptness
in
provision of export assistance;
(iv)
supportive exchange rates and demand management; and
(v)
adequate investment provision for infrastructure where
there is a high concentration of export production industry.
112.
Tourism
has
demonstrated its
potential
in
contributing
substantially to foreign exchange earnings. The circumstances are
62
a rapid expansion of tourism.
for
propitious
does not encounter protectionist barriers.
Tourism
industry
It is today
equipped
a reasonable infrastructural base and is poised for further
with
faster growth. The future expansion of tourism should be achieved
through the private sector.
mainly
planning
devising effective regulatory mechanisms to
and
protect the interests of industry,
International
113.
transformation.
by
essential
providing
development,
broad strategies of
infrastructure,
The state can contribute
the consumer and environment.
environment
trading
rapid
undergoing
is
Protectionism is growing and multilateralism
is
under pressure. The inequity of the present international trading
system from the viewpoint of developing countries is sought to be
perpetuated.
system,
trading
in
Moreover,
the name of the strengthening of the
new linkages are sought to be enforced
through
the multilateral trade negotiations.
114.
policy will have to be fashioned to meet
India's trade
challenges.
these
Our efforts to preserve the multilateral
and
non--discriminatory character of the trading system must continue.
trade and financial
In keeping with our development,
prepare
should
international
objectives.
ourselves
trading
The
to
play
active
consistent
system,
gradual
an
shift
with
from quantitative
technological leap frogging might
needs,
we
role
in
the
our
national
controls
to
tariffs
and
process.
Our resistance to introduction of new linkages intended
to
circumscribe
the
autonomy
of
development
facilitate
policies
this
must
continue with renewed vigour. We should strenghen our cooperation
with
the like-minded developing countries in forging coordinated
approach and negotiating positions in the multilateral fora.
63
115.
While
policies
must
the
freedom to pursue
be jealously guarded,
autonomous
development
trade
and
economic cooperation among developing countries must continue
to
be
enhancement of
a major aim of our external economic policy.
realise
determined
these
by
objectives
will
be,
in
the
the strength and productivity
agriculture and infrastructure.
64
of
Our ability
to
last
analysis,
our
industry,
SUMMING UP
outlined in this paper has
perspective
The
116.
implications
for
the
It
is
important
planning.
objectives,
priorities
reaching
far
of
methods
and
that these implications
fully
are
understood before the programmes and policies for the Eighth Plan
are formulated.
The
117.
The central thrust of the Eighth Plan is
Plan
will seek to give operational content to the commitment
guarantee
of
appropriate
development
programmes.
properly
engineered
to
opportunities
the
on
work
to
right
employment.
every
to
The
development
process,
employment
sufficiently large scale and
a
through
citizen
additional
generate
to
a
in
widely
dispersed manner to absorb the increments to the labour force and
the backlog of unemployed and underemployed - is the only
way
of
realising the cherished goal of the right to work
continuing
basis.
To
repeat,
emphasis
development than on a growth rate per se.
as
viable
to provide meaningful work,
is on the
on
a
content
of
Growth should be
such
a reasonable minimum standard of
living and essential social amenities to every one as speedily as
It
possible.
disadvantaged
widespread
needs
of
the
the vulnerable while also making for
a
more
should
and
diffusion
be
more sensitive to
the
of
benefits
of
the
development
across
regions
and
classes than has been achieved so
far.
It
should
moreover
be
sensitive
to
the
future
to
our
responsibility
generations
to avert irreversible damage to the environment
especially
to
sought
to
the resource base of the poor.
be
achieved
through
65
a
process
All this will
which
and
be
affords
opportunities for the people to participate widely in framing and
implementing development progrmmes,
through a system of open and
democratic decision making.
118.
The following are some of the important implications of this
approach :
(a)
,
Completion of democratic decentralisation within the
first
year of the Eighth Plan.
(b)
Acceptance
away
development,
a major change in
of
from
the
to
approach
the present system
of
rural
department-wise
schemes to integrated local area planning.
(c)
Commitment to transfer to local democratic institutions the
responsibility
planning and implementation along
for
necessary
resources
for
the purpose and
providing
with
the
them
with
access to technical personnel for planning and implementation.
(d)
Change in the role of central and state
government
depart
ments whereby their direct involvement in planning will relate to
of broad socio-economic goals and overall priorities and
setting
to
execution
projects.
scientific
At
and
of
Large
and
or
inter-district
inter-regional
the same time the government should help
technological
inputs,
experience relating to local planning,
organise
dis-seminate
and
data
and
objective
undertake
monitoring and evaluation of progress.
Formulation of relatively simple criteria and • procedures
(e)
to
make
sure
that the resources
planning
flow
to the
programmes
(f)
which
are
transferred
for
local
areas where they are needed most
nationally
important.
and
66
to
«
Utilise productively the talents and energies of women
ensuring them a life of dignity and security.
area
for
Paying
(g)
natural
especially
resources,
development
agricultural
(h)
attention to
greater
of
water
and
in
a
more
bio-mass
planning.
and
occupation through expansion of irrigation and
other
more equitable access to resources and
inputs
facilities;
(ii)
within
rural
the
soil,
conservation
stable
(i)
Emphasise
productive
and
care
making
agriculture
(iii)
society;
rainfed
of
productivity
agriculture in arid and semi arid tracts as well as in the medium
(iv) remunerative prices to the farmers
and high rainfall zones;
in
general
diversification
and
remunerative
enterprises;
of
sensitivity
(v)
into
more
employment
and
agriculture
to
regional dimensions of agricultural growth and modernisation; and
(vi)
the need to ensure fair rewards and wellbeing of the
rural
labour.
equitable
that
a comprehensive social policy
Develop
(i)
and
socially just approach to
(alongside
economic
a
more
development)
itself to marginalised and excluded sections
addresses
of
society,
including the Scheduled Castes, the Scheduled Tribes and
Backward
Classes,
labour,
and
like
bonded
growing child labour and exploitation of migrant
labour
other
slum
and
seeks
dwellers
to undo major
ills
in urban areas who do
not
get
even
statutorily prescribed minimum wages.
(j)
Improve the quality of human resources through (i)
on the containment of population growth;
educational
illiteracy
by
emphasis
(ii) a major overhaul of
policy
to
achieve
the
goal
of
the
end
of the 1990s
and
making
elimination
education
of
a
resource for the mass of the people to enable them to participate
67
i
the productive process and avail of the right
in
view to raising the
the
and
a restructuring of the system of health and nutrition with
(iii)
a
work;
to
that
so
people,
levels of living and quality of
they can participate in
life
of
development
the
process in full measure.
(k)
Promote
particularly
supply
production
adequate
mass
rejuvenated,
with
assured
credit and marketing facilites and
a
supplemented
by
cooperative
democratic
goods,
consumer
through labour intensive manufacture
raw materials,
of
of
movement
voluntary organisations and associations of craftsmen; and ensure
that
fiscal
traditional
and
other concessions meant
for
the
not
unfairly
appropriated
by
others;
and
by
Expand infrastructural facilities as well as the supply
of
industry
are
reservation where necessary.
(1)
key intermediate and capital goods to meet growing
requirements.
Greater efficiency in production and conservation in use would be
precedence
given
over creation of new capacity
in
and
energy
capital intensive sectors.
(m)
Review
(i)
carefully
all
proposals
for
new,
large
investments
with
the aim of working out a phased
programme
in
consonance
with
the new priorities in and multiple
demands
on
investment
resources;
long term programmes
for
(ii)
work out
efficient development of selected key industries in collaboration
with the relevant organisatiins,
upgrading
continuously
research and design;
of
and
paying particular attention
indigenous engineering
capabilities
to
in
(iii) provide guidance for the pattern
private industrial development along socially desirable lines
through
development
financial institutions in
68
terms
of
their
their control over equity
the
private
Induce innovative approaches to development through
inputs
lending
policy
and
in
corporate sector.
(n)
of science and technology which has to be made
needs of the people,
responsive to the
especially those living in rural areas, and
to the concers of employment, environment,
and promotion of self-
reliance.
(o)
Insist
on
programmes
development
being
environmentally
through strict adherence to the norms and guidelines
sustainable
of environmental clearance of projects already laid down,
and of
measures pertaining to resource conservation,
control
pollution
and upgrading the quality of land and water resource.
(p)
Thrust on exports in order to reduce dependence on external
resources.
(q)
Contain
substitution,
imports
through
a
efficient use -of imported
more
measures
for
selective
import
and
materials
avoiding imports related to inessential consumption.
(r)
the strictest possible
Enforce
expenditures,
particularly
resources through,
the
of a non-development
on borrowings (inernal and external);
dependence
larger
leakages,
economies
subsidy
in
government
nature,
reduce
generate
more
among others, better tax collection, plugging
enterprise surpluses and an overall review
component of the public expenditure and its
of
social
impact.
119.
We should avoid the temptation to look at the attractiveness
of a plan in terms of the overall growth targets and the size
of
The danger of basing the plan and
its
the
public
targets
on
sector plan.
an
over-optimistic
69
assessment
of
the
economy's
capability will - as has been repeatedly demonstrated in the past
- only
the problems of
aggravate
payments
The
difficulties.
consistent
balance
not
and
an
just
but a
projections,
problems
human
resolve
unemployment, poverty and
120.
inflation
is
plan
set of arithmetical
and
address
imbalances,
financing,
deficit
inefficiency,
inter-sectoral
arising
out
of
internally
means
to
mass
of
social and economic inequality.
For the reasons already discussed,
this paper has focused
primarily on the major strategic shifts in terms of objectives as
well as the instrumentalities of planning in the light of the new
mandate
than
rather
on
quantitative
projections.
While
the
output
detailed
implications of this reorientation in terms
targets,
and investment allocations, and the balance of payments
projections
stage
of
remain to be worked out, it would be useful at this
certain broad indicative macro targets to meet
to outline
the main concerns mentioned earlier.
The
task would be
expand
opportunities
for
rates
and
incomes
at a sufficiently rapid rate to absorb the increment
in
labour
force due to population growth and also to
(a)
productive
central
employment
the
reduce
present
underemployment.
3
The
to
at rising levels of real wage
level
of
open
progressively
and
unemployment
target will be to achieve on the average a
cent annual rate of increase in employment over the
per
next
decade.
(b)
The second important objective will be to ensure a
minimum
standard of social services and economic infrastructure all
the
country.
More specifically,
the aim would be to achieve at
least reasonable food security for the poor;
70
over
attain
50 per cent
literacy
adult
rate in the course of the next
illiteracy
eliminate
emphasis
to
literacy
rate;
by
achieving
ensure
a
the end of the
decade;
significant
improvement
that
there
protected source of drinking water;
quality
of
years
five
give
special
in
female
village
is no
and
without
a
and improve the coverage and
services,
especially
for
mothers and children and bring down sharply child mortality
rate
nutritional
and
health
along with birth rates.
The twin emphasis on employment and better public services
(c)
questions more about the direction than the mere size
raises
investment
the next five years.
in
redirection
features
of
desired
redirection
The need for and the
have already
broad
brought
out.
The
improving
upon
the
been
has to be achieved by
of
potential for growth which has been already built up.
It is also
important to note in this context the following:
(i)
The
past rate of growth has been attained at the cost
increasing
unemployment,
a
widening
payments
deficit
of
which
(both
fiscal
are
and
balance
unsustainable),
of
of
an
accentuation of economic inqualities which is not acceptable, and
increasing distortions in the regional pattern of growth.
The
(ii)
institutional
institutions)
social
which
is
framework
of
Panchayat
Raj
main
instrument
of
(by way
envisaged as the
and
transformation through the local level area planning
guaranteeing full employment,
is not yet in place in most
parts
of the country.
(iii)
The task of organising the required local level planning
is
easy,
not
and
the speed with which this
71
can
be
made
to
smoothly
function
and
efficiently
different parts of the country.
and
is
while the objectives
Therefore,
the future thrust are clear,
for
vary
to
likely
these
the impact of
proposed
changes on the local level effort, local savings (and investment)
on output cannot be predicted with precision,
and
for
at least
the first few years.
It is also important to note that in the immediate future,
(d)
pressure on resources and the need
to
contain
investment
on
social
considering
the
inflationary
pressures,
the
of
extent
infrastructure is not amenable to a dimensional
the stagnant domestic savings rate,
given
and
large
adopt
a
severe fiscal
with reference
realised
during
without
endangering fiscal and monetary stability.
last
factor
the
crunch
it would be prudent
balance of payments deficit,
moderate rate of growth,
Hence,
change.
which imposes the most serious
rate
the
to
Eighties (around 5.3 per cent
to
per
annum)
It is
this
in
the
attaches
the
constraint
immediate future.
121.
At
same time,
the
the Planning Commission
savings
greatest
importance
performance
and
promoting
a dynamic and eveny spread growth of the economy.
The
to
raising
the
the trend rate of growth
achievement
of
dependence
on foreign resources would require an improvement
the
even
would
fulfilment
also
of new commitments,
call
account,
such as
for extra mobilisation
government - Central,
into
a
level of savings (which stands at around
current
cent of GDP) and a minimum 12% annual volume
The
with
State and local.
of
growth in
reduced
20.5
in
per
exports.
the right to
work
by
the
resources
Taking all these factors
the Planning Commission proposes that the average
72
savings
rate should be stepped up to around 22 per cent
of
GDP
during
the
would be feasible only
if
the
Eighth Plan.
This
government observes strict fiscal discipline and takes
to
measures
contain growth of non-development
proliferation of staff.
stringent
expenditure
and
On this basis, and on the assumption of
a net foreign resources inflow of 1.5per cent of GDP,
the growth
rate in GDP in the Eighth Plan would work out to 5.5 per cent per
annum. The Commission proposes to closely monitor the performance
the
of
economy,
savings
in regard to
particularly
rate
and
use efficiency in the coming years with a view to making
capital
appropriate adjustments at the time of the Mid-term Review of the
Plan.
There is no simple or unique correlation in the short
122.
either
in
theory
or in Indian experience between the
growth
of
output
and the rate of
rate
run
of
employment.
The
realisation of a faster growth of employment even with a 5.5
per
annual
growth
of
growth of GDP inthe Eighth Plan
is predicated
on
significant changes in the structure of output and in policy
and
cent
allocative strategy:
(i)
significant
a
allocated
direct
a
to
increase in the
rural development;
proportion
(ii)
a
of
conscious
investment
effort
to
more investment for rural development in areas which have
relatively
high concentration of
poverty
and
unemployment;
(iii) making a more efficient use of resources allocated to rural
development
delivery
;
- by reducing leakages and by better
and
(iv)
encouragement
73
of
targeting
and
labour-intensive
and
energy-capital saving techniques of production in all segments of
the economy.
123. The Commission has already highlighted that there is a great
deal
of room for improvement both for mobilisation of
and
for bringing about improvements in efficiency in their
The
proposed
reorientation outlined in this paper is
it
is
nor necessary to take
these
improvements
and
prudent
more
are
obvious
problems
and
in implementing the proposed changes.
It would
be
for
appropriate
reforms
granted.
There
at this stage to concentrate on
on which these improvements are contingent,
projecting
to
However,
neither
difficulties
meant
ways.
this
impact
use.
potential in a variety of
exploit
their
resources
a more impressive
Planning Commission would,
macro
economic
the
systemic
rather than
performance.
The
however, be pushing for these reforms
at all levels as a matter of high priority.
74
Position: 1771 (3 views)