Concern over rising prices: Modernise agriculture (Editorial)
The economic growth rate is likely to be 8.7 per cent in the review year 2007-08 as per the Economic Survey report presented in the Parliament. Finance Minister, P Chidambaram expressed concern over continuous rise in inflation. The expected growth rate of 8.7 per cent is as per the trend of the economy, it is informed. The Survey recommends reforms for strengthening of the rupee and to check fall in industrial demand to achieve growth rate of 10 per cent. Finance Minister said that central government and Planning Commission both would have to come forward for the reforms in policies and institutional reforms so that in the coming decades foundation for higher economic growth could be laid. Concern was expressed on economic slowdown in America, effect of strong position of rupee, slow industrial production due to decreasing demand of consumer items and lack of basic facilities of commodity and social sector. There is need to meet challenges both at the central and the state-level. These policies of central government should be managed well and the inflation should be checked with a view to strong economic system. The states should also reform their system in government and semi-government services. Real rate of interest should be according to inflation and in this connection loan and share market should be made liberal. We are behind in agriculture sector. Efforts are on for reforms in this direction. The survey calls for removal of hurdles coming in the path of modernisation and advancement of agriculture. According to the review, investments and savings and debt and loans are decided through real rate of interest. With a view to control inflation, agriculture needs to be modernised. The survey says the government is committed to make the economy strong, to increase pace of development and economic growth rate. Efforts on checking inflation are being made and proper measures would be adopted in this connection.