FM seeks support of corporates to build rural India
Finance Minister P Chidambaram on Thursday asked industry leaders to join hands with the government in putting agriculture and rural economy on a high growth path, which is also the main focus of Budget 2007-08.
By PTI |
NEW DELHI: Finance Minister P Chidambaram on Thursday asked industry leaders to join hands with the government in putting agriculture and rural economy on a high growth path, which is also the main focus of Budget 2007-08.
"Just imagine what can happen to industry and services if agriculture grows at 4 per cent... It is in your interest that agriculture must grow at 4 per cent," Chidambaram said at a post-budget interaction with the industry.
If the purchasing power of rural India is at par with urban India, it would lead to a manifold increase in demand for goods and services, he said, adding the government would facilitate growth in agriculture through budgetary support for farm credit, fertiliser, irrigation and certified seeds.
He lamented that wheat production had been stagnant at around 69-72 MT, rice 90-94 MT and pulses 11-14 MT over the past few years, even as rise in population and per capita income had changed consumption patterns in the country.
Pointing out to the contrast between a prosperous and poor India, he said: "We can't delude ourselves that we will live a particular style of life, while they continue to languish in poverty".
He said the industry and services should welcome the focus given to agriculture and rural economy, which would create additional demand for their goods like refrigerators, two-wheelers and TV sets.
The government is also focusing on sectors like small cars, textile, leather and footwear, gems, jewellery and pharmaceuticals to make the industry competitive in these areas globally.
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