India's growth story could be hampered by low agricultural productivity and inadequate physical infrastructure, especially power, in the medium- to long-term, says Prime Minister's Economic Advisory Council (PMEAC).
"The Council is of the view that the two principal constraints to growth that face India in the medium to long term are low productivity in agriculture on the one hand and inadequate physical infrastructure on the other, of which, the most important component is the power sector," it said.
The PMEAC indicated the major constraints to growth in its review of the economy released on Friday, wherein it said the country would return to 9 per cent growth by 2011-12.
"Technological and organisational factors have emerged as a major constraint to sustainable growth in agriculture," the PM's economic panel said, citing no major breakthrough in farm research since the Green Revolution years.
The research should focus more on crops and regions, it should target at resource-conserving and environment friendly technologies, it should also cover ignored areas and must pay attention to domestic and international demand, PMEAC said.
Further, soil-health cards must be provided to all cultivators on priority basis to help arrest the trend of declining response to inputs like fertilizers and irrigation.
Backing controversial Genetically Modified (GM) crops, the PM's panel said, "After the success of Bt-cotton and the benefits it has brought to the farmers in Gujarat and Maharashtra, it is imperative that the government must have a clear policy on GM crops."
