Hyderabad: Economic advisor to the Prime Minister, Dr C Rangarajan on Tuesday said that the country would like to see a growth rate of 8% in 2010-11 and 9% in 2011-12 however the agricultural growth become a cause of concern.
“Agricultural growth rate should not fall below 4% in this financial year for food security as 60% of the population are in rural areas,” Rangarajan said.
He said that the country should continue to grow at 9% for decade to give a decent and quality life to common man.
Inflation of food articles is now a cause of concern to the nation, he said, adding this year the economy is expected to grow with 7 and 7.5% overall.
The agricultural growth may decline by 1-2%. However, industrial and service sector may grow at 8.6% and 8.7% respectively, Rangarajan.
The rice output is expected to decline by 13 million tonne due to deficiency of rainfall to the extent of 22%, he said.
To control the inflation, Rangarajan said there has to be a check on aggregate monetary demand indicating a rise in CRR level.