Karaikudi: Observing that the Indian economy was passing through a critical situation, Prime Minister`s Economic Advisor C Rangarajan today said government is taking steps to rectify it.
"The country`s economy is passing through a critical situation, the growth rate is slow, and inflation high. This has to be rectified, the Chairman of PM`s Economic Advisory Council (PMEAC) said, adding, government was taking steps in this direction.
He stressed the need to control inflation and stabilise government`s revenue.
Participating at the convocation of the Alagappa University here, he also stressed the need for increasing coal production, and a strong economic policy.
Stating that the economic crisis in 1991 had sown the seeds for new economic policy,he said "The present economic growth is only due to the new economic policy,as it removed all the hurdles in the way of economic growth."
The ratio of contribution of Government and Private sector had been redrafted.Since 1992-93 the annual economic growth had been at 6.9 per cent.Despite global crisis,economic growth touched 8.4 per cent in 2009-10,he said.
Though the growth of agricultural sector was good in 2011-12,the production was disappointing as the investment in the farm sector was low, he said.Besides, production of coal and and minerals were also low.