Kolkata: The Tenth Plan target of achieving eight per cent gross domestic product (GDP) growth during 2002-07 is realistic and challenging, Planning Commission member N K Singh said on November 8.

Addressing the national executive council meeting of FICCI (Federation of Indian Chambers of Commerce and Industry), Singh said that if the country failed to meet the GDP growth target during the Tenth Plan period, then every one per cent fall would result in unemployment of 25 million people.

He said the next meeting of the national development council on December 21, which will be chaired by Prime Minister Atal Behari Vajpayee, would approve the Tenth Plan policy document.

According to Singh, the key ingredients to eight per cent GDP growth were low inflation, stable Rupee, and high foreign exchange reserves.

The Planning Commission member said that the Tenth Plan document had focussed on areas where there could be sizeable improvements in incremental capital-output ratio.

On the controversial issue of disinvestment, Singh said that privatisation had always been a contentious matter, adding that it should be carried out after reaching a consensus.

He also said that privatisation could not be equated with economic reforms.

PTI