Mfg, agri can help GDP grow in double-digits: Assocham

The industry chamber Assocham today urged the government to bring about reforms in the agriculture and manufacturing sectors to push economic growth to double-digits in the medium-term.

Suggesting a two pronged-strategy to help the economy clock 10 per cent growth, Assocham said a consistent emphasis would have to be made to achieve over 15 per cent and 4 per cent growth in manufacturing and agriculture, respectively.

"The move would create thousands of direct and indirect jobs and push growth to 10 per cent growth rate," it said.

Prime Minister Manmohan Singh had recently said the economy is expected to grow by 8.5 per cent this fiscal and that the country is capable of achieving 10 per cent growth in the medium-term.

Assoham said the government must increase the pace of agricultural reforms to ensure better variety of seeds, increase land fertility and technological upgrade in the field of horticulture and other farming practices. Irrigation would also have to be added through higher allocations from the Central pool since irrigation is largely dominated by the states, it added.

As per the official initial estimate, agriculture growth in 2009-10 would contract by 0.2 per cent.

On the manufacturing front, Assocham said to ensure competitiveness, friendly policies need to be taken so that they can go in for intensive R&D programmes and infuse new technologies. In 2009-10, the manufacturing sector accelerated to 10.9 per cent from 2.8 per cent previous fiscal.

"The states must be involved in the process. Investments need to be made in the power sector," it said.

The Centre is expected to come out with a national manufacturing policy by the year-end. The GDP numbers for 2009-10 are scheduled to be released on Monday.