Stressing the need to focus on agricultural growth, C. Rangarajan, former governor of Reserve Bank of India said, “In the days to come, India will have to ensure that its agriculture sector is doing well since even small shortfalls disrupt economic growth.”
In order to improve agriculture, the country needs to improve productivity along with the marketing for agricultural produce, he said, delivering a lecture on ‘The Indian Economy – Past, Present and Future’ at the Annual Chennai Lecture Series organised by the Rotary Club of Chennai Carnatic on Sunday.
Another area that needed attention was the power sector, he added. “It is not only Tamil Nadu that has a power crunch. There are a number of States in a similar situation.”
In contrast to China, India’s electricity generation was growing at a slow rate. “China adds in one year what India adds to power generation in five years,” he pointed out.
The third major factor that the country needs to focus on was good governance. “In addition to good policies, good governance is also needed to ensure that the country experiences economic growth.”
“Only if India grows at 8 to 9 per cent per year will the per capita GDP increase from $1,600 to $8,000 by the year 2025. It is only when we reach that level that we will rise from a low-income country to a mid-income country,” he said.
