The Approach Paper to the 12 Plan has proposed a growth target of 9% per annum in the period 2012-17. Indian economy recorded a growth of 8.5% in 2010-11, but in the first quarter of the current fiscal it slipped down to 7.7%.

“It is relevant to ask whether this is feasible since the economy is currently slowing,” he said while inaugurating the 56th meeting of the National Development Council here on Saturday.

Admitting the concern for the slowdown in the Indian economy, he attributed it “as a short-term phenomenon, reflecting highly unsettled conditions in the world economy” and added “growth rates are being revised downwards in all countries for the current year.”

Sensing a mood of negativism gripping the country, Dr Singh urged for “collective responsibility” to reverse this mood.

Dwelling upon the complex issue of interaction between politics and development policies, the Prime Minister said : “managing this interaction effectively is crucial if India is to achieve her full potential.”

Pointing out the world is going through a major realignment of economic power and emerging markets are becoming important, Dr. Singh said 'Our policies in the 12th Five Year Plan must therefore be shaped to take full advantage of these emerging possibilities'.

Clarifying his responsibility the Prime Minister said ; “elected governments can deliver only if …… the political process works to allow governments to function in a manner where the needs of longer term development do not become hostage to short-term concerns.”

He called for cooperation from the Opposition parties in the development programmes. He said : “what this means is that Parliamentary parties have to strike a difficult balance between maintaining adversarial political positions on many issues, while also cooperating to advance a shared longer term national agenda. This balance is not easy to strike.”

Dr Singh urged the chief ministers of states to work together with the central government to help accelerate the pace of growth and improve the quality of development in the country. “The world has a great stake in the success of this Indian model of development,” he said.

The Prime Minister emphasized the need for developing infrastructure in both rural and urban areas as critical for inclusive growth and urged both the public and private sectors to play a major role, with public investment concentrating on areas where the private unwilling to invest.

He said special efforts should be made to control degradation of land and water resources which affects the livelihood of millions of small and marginal farmers, who live on the edge of subsistence.

Dr Singh indicated that the infrastructure plan for the remote northeastern region of the country would be continued in the 12th Plan period. Special requirements of Jammu and Kashmir will be factored in the plan calculus. The tribal dominated districts in the heartland of the country, which are the focus of left wing extremism, would need better infrastructure, particularly roads.

He said that the government would provide policy environment for the growth of the economy, develop infrastructure, evolve special programmes for livelihood support for the poor and the vulnerable, ensure that every citizen have access to essential public services of acceptable quality in health, education, skill development, drinking water and sanitation. Both the central and state governments should review their work and strengthen policies wherever necessary.