Tirupur: The country should reverse some of the neo-liberalisation policies to increase spending on agriculture and rural development sectors, if it has to come out of the economic depression caused by the global recession, according to V.B. Athreya, Advisor (food security studies), M.S. Swaminathan Research Foundation.
He was delivering keynote address at a seminar on Global economic crisis and India’s approach organised by the Institute of Chartered Accountants of India, Tirupur branch, and Rotary Club of Tirupur South, here recently.
Mr. Athreya said huge fiscal stimulus in the areas of education, health, irrigation and farm research with focus on rural areas would be essential to boost the sagging economy.
“Our fiscal stimulus is now below one percent of the Gross Domestic Product (GDP). This is feeble vis--vis the estimated fiscal stimulus of 14 per cent of the GDP in China for 2009 and 2010”.
According to him, even urban areas should be brought the purview of National Rural Employment Guarantee Scheme (NREGS) considering that the urban employment has been hit adversely in the economic crisis.
“We should not anymore allow our obsession with the fiscal deficit to dictate the economic policies”, he pointed out.
S. Chandrasekar, chairman of ICAI, Tirupur branch, among others, spoke.