'Growth not enough to reduce income disparity'
The Reserve Bank of India (RBI) said nine per cent economic growth will not reduce income disparity unless about one crore people currently engaged in agriculture find remunerative non-agricultural employment.
By PTI |
MUMBAI: The Reserve Bank of India (RBI) said nine per cent economic growth will not reduce income disparity unless about one crore people currently engaged in agriculture find remunerative non-agricultural employment.
"An overall growth of nine per cent will further increase income disparity between agriculture and non-agriculture households, unless around 10 million people currently employed in agriculture find remunerative non-agricultural employment," RBI Governor Y V Reddy said at a conference in Argentina.
Stressing on the need to accelerate growth in the farm sector, he said the Planning Commission's target of increasing agriculture growth rate to four per cent would improve rural job conditions by reducing real wages and under-employment.
There was a need to strike a parity between dependence on agriculture and the number of people employed by the sector, he said. More than 60 per cent of the population depended on agriculture while it contributes only 20 per cent to the GDP.
Reddy underlined the need of improving quality of delivery of essential public services such as education and health and the need to remove infrastructural bottlenecks.
Talking about the increasing importance of the emerging market economies (EMEs) in the global arena, he said the rise of the EMEs has made globalisation a two-way process where EMEs are changing from passive recipient to being part of active participants in the global economy.
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