Economy to grow by 7.75%: Rangarajan
Hyderabad: Indian economy will grow 7 to 7.75 percent during the current financial year despite poor performance of the agriculture sector on account of drought and floods, said PMEAC Chairman C Rangarajan.
"The economy will grow between 7 and 7.5 per cent overall but agricultural growth may fall by 1 to 2 per cent," Prime Minister`s Economic Advisory Council (PMEAC) chief said while speaking at the College of Defence Management here on the challenges before the Indian economy.
Flagging food inflation as a major concern, he said, "agricultural growth rate should not fall below 4 per cent for food security as 60 per cent of the population are in rural areas."
Although the economy did well during the second quarter (July-September) recording a growth of 7.9 percent, the output of agriculture and allied sector slipped to below 1 percent.
Food inflation in the first week of December soared to a decade`s high of 20 per cent, mainly driven by rising prices of pulses, potato and other vegetables.
Referring to the impact of the widespread drought and devastating floods on the farm sector, Rangarajan said, rice output might decline by 13 million tonnes.
However, he hoped, the rabi (winter crop) would to some extent make up for the shortfall in kharif (summer crop).
Download the all new Zee News app for Android and iOS to stay up to date with latest headlines and news stories in Politics, Entertainment, Sports, Technology, Business and much more from India and around the world.
More from India
More from World
More from Sports
More from Entertaiment
- DNA: Heart-wrenching reality of Kashmiri pandits
- DNA: Bengaluru's Mount Carmel college students show country's ideology to Rahul Gandhi
- Proud to be an Indian, no plans to leave the country, says Aamir Khan
- Rahul Gandhi's embarrassment in front of Bengaluru college students
- DNA: Aamir Khan clarifies his love towards nation but sticks to previous statement
- Yuvraj Singh completes 8000 runs in first class cricket
- Eat smart to slow down ageing and increase longevity!
- Woman commits suicide after heated discussion with husband over Aamir Khan's intolerance remark
- Intolerance issue: Those attacking me are only proving my point, says Aamir Khan – Read full statement
- Delhi gang-rape: Show juvenile rapist's face to the world, demand Nirbhaya's parents