NEW DELHI, Feb 20: The Ninth Five Year Plan (1997-2002) envisages an industrial growth rate of 8.5 per cent per annum and export growth of 11.8 per cent per annum. The plan was approved at the 48th National Development Council (NDC) here on Friday."For achieving this growth, special measures have been suggested to ensure adequate availability and requisite quality of infrastructure," says the plan. Conditions conducive for unhindered growth of industries which can compete in the international market should be created.Fiscal deficit can be reined in at 6.76 per cent of the gross domestic product (GDP) if the annual inflation is maintained at a steady level and improvements are made on the revenue collection front, it has said.The document said significant recovery in tax collection should happen for limiting the ballooning tendencies of deficit. It suggested that the revenues to GDP ratio, hence should increase to 17.47 per cent during the Plan period from 16.5 per cent noted in 1996-97.The fiscaldeficit figure, projected on the basis of an average annual inflation of 7 per cent, will have 3.92 per cent deficit from the Centre's side and the remaining 2.84 per cent will be constituted by states.In order to contain the level of fiscal deficit, it has suggested that interest rates across the board should be slashed including small savings schemes operated by the government.The Plan document has further recommended a reduction of interest rate on public debt to 11.5 per cent. ``Overall level of real interest rate (interest rate minus inflation) in the economy need to be brought down from the current high levels to the target range of 3.5 to 5.5 per cent without jeopardising the viability of financial sector,'' it said. Internal aberrations in policies are proposed to be removed in the plan. Special measures are envisaged to promote development of industries in backward areas, according to the plan. Emphasis has been laid for the industrial and economic development of the north-eastern region. Aspecial package for the region should include changes in the funding pattern of growth centres and integrated infrastructral development centres, extension of a transport-subsidy scheme, strengthening of institutions concerned with entrepreneurship and human resources development. Concessions and incentives are needed for agriculture, handicrafts, handlooms, etc.The plan proposes to review the functioning of the Board for Industrial and Financial Reconstrution (BIFR) to make it an effective instrument of reviving units. The National Renewal Fund scheme is also proposed to be recast through appropriate modifications."The retension price-cum-subsidy scheme for fertilisers and the dual pricing scheme for sugar is proposed to be reviewed," says the plan. uThe plan observes that the growth rate of the small sector has been 2-3 per cent higher than that of the large and medium industries.
