Farm sector performance key to 9 per cent GDP growth: PM

India's agriculture sector should expand more than 4.0 per cent if the economy is to achieve a minimum 9.0 per cent growth in the 12th Five Year Plan period. But, given the present uncertainties in the global economy and the challenges it pose to the domestic economy, a 9.0 per cent target would only be feasible only if we take some difficult decisions, prime minister Manmohan Singh said today.

"The Planning Commission has emphasised on a minimum 4.0 per cent growth in agriculture as it provides broad based income benefits to the rural population and also because it is necessary to avoid inflationary pressure, which could arise if high levels of growth are attempted without corresponding growth in domestic food production capabilities," he said.

The prime minister was addressing the full Planning Commission meeting to discuss the approach to the 12th Five Year Plan in New Delhi today.

While India's agriculture sector has expanded by 3.0 per cent during the 11th Plan period, the prime minister said, the approach paper has outlined the multiple interventions necessary to achieve the desired growth in the farm sector. The latest estimates have put 11th Plan farm sector growth at 3.3 per cent, he added.

The prime minister said the government wanted the Commission to consider GDP growth rate of 9-9.5 per cent but the commission felt that considering the global uncertainties it should be pegged at 9.0 per cent.

He said while the government intends to continue its big budget financial inclusion schemes in the 12th Plan as well, the approach paper has emphasised that the focus should be on implementation and governance in order to improve the effectiveness of the schemes.