FM: Agriculture in focus -Video

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Union Finance Minister P Chidambaram, in his Budget 2007 speech said, "In November 2006, the UPA Government crossed the midpoint of its term of office. A midterm report card can now be presented. There are many pluses and a few minuses, and I shall deal with both candidly. The biggest plus is that the growth rate of GDP has improved from 7.5% in 2004-05 to 9% (Quick Estimate) in 2005-06 and, according to Advance Estimate, to 9.2% in 2006-07. The average growth rate in the three years of the UPA Government is, therefore, 8.6%. Thanks to this impressive performance, despite the poor start in 2002-03, the growth target set for the Tenth Plan of 8% will be nearly achieved.

"Manufacturing is the main driver of growth, and this augurs well for the future. In the three years of the UPA Government, the growth rate in manufacturing has accelerated from 8.7% to 9.1% and further to 11.3%. The services sector continues to maintain impressive growth and has recorded, in the three years, a growth rate of 9.6%, 9.8% and 11.2% respectively" Chidambaram said.

"On the other hand, the agriculture sector has witnessed sharp ups and downs. Average growth during the Tenth Plan period is estimated at 2.3%, which is below the desired level of 4% a year. About 115 million families are classified as farming families. Furthermore, a country with a large population has to be nearly self-sufficient in essential food items; otherwise supply constraints could upset macro economic stability and growth prospects. Hence, agriculture must top the agenda of the policy makers and must hold the first charge on our resources," Chidambaram added.