The Hindu Business Line : Call for innovative ways to uplift rural economy

Delivering a special address at Bancon 2006, Dr Reddy categorically stated that no one could dwell better than bankers on inclusive growth and emphasised the need for banks' percolation amongthe poorest of the poor.

While the GDP grew at 7 per cent in the last decade, the rural economy recorded a growth of less than 2 per cent.

The Government of India and the Finance Ministry are keen to see that the rural economy grew by at least 4 per cent. But for this to happen, the agricultural productivity should go up, there should be a paradigm shift to allied activities such as fisheries, shrimp farming and poultry and the Centre's support by way of a higher minimum support price (higher than what they were getting now). "MSP though has to go up substantially,'' he added.

He stressed on the need for implementing effective farm activation programmes and for bringing in more agricultural lands under cultivation.

Conceding that the raising support to farm activity accelerated the growth momentum, Dr Reddy noted that inclusion of more funds with better support to rural farmers was `not happening'.

He said the budgeted allocation for the irrigation projects in the State had more than doubled since his Government took over two years ago. "We intend to enhance it to Rs 10,049 crore this year and increase it by another Rs 3,500 crore next year. We are targeting Rs 50,000 crore in 5 years,'' he said.

More Stories on : Events | Rural Development

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Questions over RBI directive on banks' ownership of NBFCs

Bankers asked to focus on small loans

Lower interest rates to self help groups opposed

`Bring farmers under the ambit of financial inclusion'

Call for innovative ways to uplift rural economy

Sidelights of Bancon-2006