'Farm output a worry'

Rakesh Mohan, who took over as economic affairs secretary today, expressed optimism over the economic outlook, but said the government would have to keep a watch on the oil prices.

"The economic situation is very healthy, and the industrial growth is higher. But agriculture is a cause for some concern due to the monsoon because it was 13 per cent less than the long-term average. Originally, it was supposed to be 100 per cent normal," he told reporters after assuming charge.

Commenting on the oil price situation, he said, "We have to watch the situation carefully to see how they (oil prices) are behaving. Appropriate measures would be taken by both the government and the Reserve Bank of India (RBI) to deal with the situation."

On inflation, Mohan said nothing had changed in the last five days since the presentation of credit and monetary policy by the RBI on October 26, which revised the annual inflation rate from 5 per cent to 6.5 per cent.

Mohan, who was Deputy Governor of the RBI before taking charge of his current assignment, is an expert on infrastructure development.