The strategy of the 12th five year plan should be to draw more people out of agriculture, said Mr Montek Singh Ahluwalia, Deputy Chairman, Planning Commission.
“There is a perception that agriculture should provide employment to more people. I would respectfully disagree……We need to move towards more mechanised agriculture,” he said in a lecture at the National Bank of Agriculture and Rural Development.
Mr. Ahluwalia said if the country has to grow at a good rate, it is important to create more employment in manufacturing.
He also said that India’s agriculture should move from supply of foodgrains to supply of non- foodgrains such as milk products, fruits and vegetables.
NEED FOR RURAL INFRASTRUCTURE
Mr. Ahluwalia said infrastructure such as roads, telecom connectivity and irrigation was needed in rural areas.
Building rural roads and providing telecom connectivity is the responsibility of the Central Government and building district roads is a function of the State Government, he said. “As for irrigation, the administrative responsibility lies with the State Government and the Central Government can provide the systems.”
EMPOWER PANCHAYATI RAJ INSTITUTIONS
He said that there needs to be devolution of powers to Panchayati Raj institutions. “We need to make available a certain portion of expenditure to panchayati raj institutions.” The government must give them broad set of guidelines to function as against the detailed instructions that are given now.
WATER MANAGEMENT CRITICAL
Mr. Ahluwalia said that water is a critical resource that has been spoken about very less. There is a need for better management of this critical resource.
“If we look at the water levels we are very near the stress levels in many areas.”
Many economists think that we must price water to prevent its abuse. “Theoretically it is correct, however, it is not a politically popular move.”