PM sees FY12 GDP between 7-7.5%
India’s economy is expected to grow between 7 and 7.5 per cent the current fiscal, lower than 8.4 per cent expansion previous year in the wake of uncertain global economic environment and the recent monetary tightening by RBI, Prime Minister Manmohan Singh said on Friday.
He, however, took comfort in easing food inflation in recent times, but said the key to controlling food inflation on a sustainable basis lay in increasing agricultural production and productivity. Addressing a conference of Chief Secretaries, he said states’ cooperation was vital for better production and productivity in the farm sector and also complimented them for a 6.6 per cent growth in the sector last year.
Singh said more attention was needed to be paid in the areas of agricultural research and agricultural extension system, public investment in agriculture, and reform of the agricultural marketing system and practices. He said it was important to review and amend the Agriculture Produce Marketing Act to enable farmers to bring their products to retail outlets and also allow retailers to directly purchase from the farmers. “This will bring better remuneration to farmers, check wastage and allow competitive prices to prevail in retail markets,” Singh said.
