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In spite of the fact that agriculture sector in India suffered due to drought and flood situations, C Rangarajan, the chairman of PMEAC, holds that Indian economy would register a growth of 7-7.5% this fiscal.
According to the chief of the Prime Minister's Economic Advisory Council (PMEAC), "The economy will grow between 7% and 7.5% overall but agricultural growth may fall by 1% to 2%". Adding that food inflation is the main concern, he stated "agricultural growth rate should not fall below 4% for food security as 60% of the population is in rural areas."
While economy performed well in the second quarter registering 7.9% growth, the yield of agriculture and associated sectors went down by 1%.
Pointing out to the damage caused by drought and flood to the farm sector, Rangarajan informed that rice output might fall by 13 million tonnes. Nevertheless, he is hoping that rabi crop would to certain degree counterbalance the decline in kharif crop.
The Times of India
December 30, 2009
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