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Home  » Business » Check inflation, focus on agriculture: India Inc

Check inflation, focus on agriculture: India Inc

Source: PTI
February 27, 2007 17:11 IST
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Sharing the concern over rising prices, Indian industry on Tuesday asked the government to focus on agriculture and bring a second green revolution to contain inflation.

Expressing satisfaction over the health of economy as presented in the pre-Budget Economic Survey, Ficci President Habil Khorakiwala said the country needed a second green revolution.

"So far we have been seeing sluggish growth in agriculture and it is time we should think of a second green revolution," he said.

Echoing similar sentiments, Assocham President Venugopal Dhoot said the Finance Minister P Chidambaram will have a task in hand to control inflation, while the agricultural sector, education and health remained prime areas of concern.  Agriculture growth has been stagnant at 2.7 per cent and its share in GDP has dipped to 18.5 per cent, Dhoot said.

Khorakiwala said Budget should focus on increasing agricultural output and reduction in wastage in the farm to consumer chain. "Efforts must also be made to remove middlemen to curtail price rise," he added.

Reacting to the Economic Survey, CII President R Seshasayee said attention must be given on moving towards market reforms for poverty alleviation and elimination of unemployment.

"It can be seen that in the last few years wherever the private enterprises have been given space, like services and manufacturing, they have delivered digit results," Seshasayee said.

On the other hand, in areas like mining and quarrying; electricity and water supply growth rates were lagging behind, he added. "The survey recognises these issues very well and leads to solutions, which the country will endorse and move towards the market economy," he said.

It gave a clear report on areas, which are doing well and issues that need to be addressed, Seshasayee added.

Indo-American Chamber of Commerce president Deepak Pahwa said immediate steps should be taken, including higher budgetary allocation for education, health to ensure that the fruits of reforms permeate to the grassroots and common man is brought to mainstream.

Expressing concern over rising prices, particularly of primary goods that hit the common man, he said a multi-pronged approach should be adopted to check inflation.

Economic Survey 2006-07: Complete Coverage

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