More investment in agriculture needed, says Rangarajan

The Prime Minister's economic advisory council chairman, C Rangarajan, on Wednesday called for greater investment in agriculture to achieve a higher rate of growth.

The Prime Minister's economic advisory council chairman, C Rangarajan, on Wednesday called for greater investment in agriculture to achieve a higher rate of growth.

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"In the last three or four years, our agriculture growth rate is less than the target of four percent. This has to be improved upon through investments in the agriculture sector," Rangarajan said.

He was speaking to reporters at the Madras School of Economics here after launching a book, "Political Economy of Poverty Eradication in India and Essays on Fiscal Reform", written by Raja Chelliah.

Asked about the hardening of the rupee against the US dollar, he said the Reserve Bank of India (RBI) will take necessary measures so that the exporters will not be affected.

"I don't expect the foreign exchange inflow will be high to increase the value of rupee," he added.

He also said the RBI will take necessary action on interest rates to tame inflation.