India's economy to grow between 7 to 7.75 percent in current fiscal: Rangarajan

Last Updated: Tue, Dec 29, 2009 11:50 hrs

The Prime Minister's Economic Advisory Committee (PMEAC) chairman, C Rangarajan, said here on Tuesday that country's economy will grow between 7 to 7.75 percent during the current fiscal despite poor performance of the agriculture sector on account of drought and floods.

Addressing the students of College of Defence Management here, Rangarajan said: "The economy will grow between 7 and 7.5 percent overall but agricultural growth may fall by 1 to 2 percent."

Highlighting food inflation as a major concern, he said: "Agricultural growth rate should not fall below four percent for food security as 60 percent of the population are in rural areas."

Though the country's economy did well during the second quarter by recording a growth of 7.9 percent, the agriculture and allied sector output slipped to below one percent.

Mentioning the impact of widespread drought and devastating floods on the farm sector, Rangarajan said: "Rice output might decline by 13 million tonnes."

However he expressed hope, that the rabi crop would help in covering the shortfall of kharif. (ANI)

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