"The recent increase in diesel prices is an important step in the right direction," he said while addressing the meeting of the Full Planning Commission which was called to approve the 12th Five Year Plan document.
Despite rising subsidy bill, says fuel price action and other steps in contemplation would keep it at 5.3% of GDP, not more
The Full Planning Commission is all set to approve the 12th Plan document that seeks to raise the average annual economic growth during the five-year period ending March 2017 to 8.2 per cent from 7.9 per cent achieved in the previous Plan on Saturday.
Besides, the economic growth in the January-March quarter last fiscal was at nine-year low of 5.3 per cent.
While the private sector has been involved in a small way in upgrading government-owned Industrial Training Institutes and certain health initiatives, the PPP projects have not really taken off in a big way in these areas, PM said.
Prime Minister Manmohan Singh on Tuesday cautioned that return to high economic growth should not be taken for granted, as the global environment is likely to remain difficult in the year ahead.
It has been found during the 11th plan period that whenever economic growth accelerates beyond 8 per cent, inflationary pressures seem to develop owing to a variety of supply-side constraints.
Prime Minister Manmohan Singh said on Tuesday the global economic downturn which had affected Indian economy as well, is now coming to an end with slow return to normalcy.
Prime Minister Manmohan Singh will preside over a full Planning Commission meeting on September 1 for the mid-term appraisal of the Eleventh Five-Year Plan period (2007-12).
A severe drought has the potential to restrict the country's economic growth to 5.5 per cent, the Planning Commission has said.
The Eleventh Plan draft document has built a strong case for relaxing foreign direct investment norms in key sectors like insurance, private banking, single brand retailing and broadcasting. The draft would be discussed at full Planning Commission panel meeting on Thursday.
In addition, the government also plans to float power bonds -- Vidyut Vikas Patra to mobilise Rs 50,000 crore (Rs 500 billion) to finance various projects in the sector under the Eleventh Plan period. The VKP to be floated on the lines of the Kisan Vikas Patra will have a lock-in period of five years.
The government plans state- and district-specific agricultural strategies to increase farm yield.
Speaking at the annual conference of the Karnataka Planters' Association in Bangalore, he said the coffee sector had been allocated a sum of Rs 750 crore (Rs 7.5 billion) in the 11th plan (2007- 2012), up from Rs 300 crore (Rs 3 billion) in the previous plan.
Amid criticism over engaging experts from multilateral agencies like World Bank, Planning Commission on Wednesday asserted that none of the "outside bodies"
State governments are expected to play a more significant role
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