Saturday, February 26, 2011

Economic Survey 2011 in India: Some Reflections

Indian Finance Minister Pranab Mukherjee presented Economic Survey 2011 in the Parliament. According to the Minister, Indian agriculture sector saw a healthy growth in the last one year. This growth is going to be even better in the next one year.
Economic Times reported:
The report, presented in parliament ahead of Monday's general budget, said the farm sector grew at 2.87 percent in the first four years of the current five-year plan from 2007.
"In order to achieve the plan target of average 4 percent per year, the agriculture sector needs to grow at 8.5 percent during 2011/12," said the report, tabled by Finance Minister Pranab Mukherjee . The farm sector is likely to grow at 5.4 percent in 2010/11.

It is good news but the main question is that inflation and rising food price has become a major issue in India these days. It seems that the government has become almost helpless to fight against this problem. I wonder what Pranab Mukherjee is going to do to tackle this problem.
One of the things that Pranab Mukherjee and his colleagues should do is to develop the infrastructure in the rural areas. Millions of people living in rural areas are still not getting any basic facilities. The farmers still have to suffer to get a small loan or sell their products at a reasonable rate in the market.