Y V Reddy’s central point is that while outlining a strategy for the Twelfth Plan, we must also focus on the risks that the economy may face and evolve a strategy to manage those risks. This is sage advice and a very useful input as we move towards finalising a workable strategy for the Twelfth Plan.
 

This paper attempts to review the recent performance of the economy and lists the priorities and challenges for the Twelfth Plan. The Indian economy will enter the Twelfth Plan period in an environment of great promise, but the next five years will also be a period of major challenges.