Current account deficit pegged at 3.5% this fiscal: C Rangarajan

Account deficit

Rangarajan said FDI in multi-brand retail will streamline the existing distribution mechanism.

"But it is also taken care to see that it does not affect the small retailers. A rule also has been made that 30 per cent of the total goods should be sourced from small and medium enterprises. Therefore, sufficient precautions have been taken. I think the new retailers when they come in, will be able to reduce the distribution margin and make the agriculture commodities, in particular food commodities, more at a cheaper rate", he said.

Earlier participating at the 14th Pole Star Foundation award function organised by Polaris Financial Technology, he said there are two major sectors of the economy which needs immediate attention.

"One is agriculture and the other is infrastructure, more particularly power. Power shortage has become very acute. I do not have to say for the people in Chennai or Tamil Nadu", he said.

He said, the last two years have clearly shown that how even a short fall in agriculture productivity can cause serious distortions in the economy.

"Therefore we need to focus attention on it from the pointof reducing poverty, from the point of food security. We need to ensure agriculture grows at four per cent per annum. And also we need to see that the basket of goods we produce even in agriculture must also change according to the demand pattern", he said.

On the acute power crisis, he said,"we need to address the issue. We must understand that China adds in one year in terms of capacity addition in power, what we add in five years. That is the magnitude of difference between India and China".

"I know there are issues like availability of coal, land acquisition, environmental concerns. We must address all these things", he said.

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