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India - Economic situation and prospects (Inglês)

Shortfalls of India's earlier development plans reflected the ambitious targets set, poor project design and implementation, and financial constraints. The new Plan projects a more realistic growth rate. The targets for key sectors such as power generation, irrigation and cement, fertilizer and coal production remains ambitious but feasible. However, the principal objectives relating to the reduction of unemployment and poverty will be difficult to attain and will require fundamental institutional reforms. The new Plan is expected to be financed by a rapid rise in domestic savings, an effort that may not be realized. The evidence suggests that the foreign exchange requirements will continue to increase rapidly, and sustained growth will require a rising volume of aid. Growth in agriculture is a crucial element in achieving economic and social objectives as it greatly affects performance in other sectors. The largest allocation, however, is for power investments.

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