Infrastructure deficit pose major hurdle to GDP growth:Dr Rangarajan

Mumbai, Apr 9 (UNI) Despite putting in an additional capacity of 23,000 MW during the tenth plan, country's power sector continues to remain a grey area in the growth map, pointed out Dr C Rangarajan, Chairman, Economic Advisory Council to the Prime Minister.

It's a cause of concern that even the highly industrialized states like Maharashtra, Gujarat and Haryana have been experiencing drastic power shortages against the call for better infrastructure by the emerging economy, he said while speaking on the sidelines of a seminar organized by the Bombay Chamber of Commerce and Industry (BCCI), here today.

To achieve the dreamy target of the gross domestic saving rate of 32.3 per cent and a predicted annual GDP growth of nine per cent, there needs to be solution to a host of challenges among which the recent inflation rise stands top.

This apart, the negative consequences of high fiscal deficit, which is expected to come down to 3 per cent by the end of year 2009 and the equally devastating trade deficit (now running at 7-8 per cent) are also to be put under check, he remarked.

''Since more than 60 per cent of India's rural population wholly depends on the rural agricultural earnings, its impossible to overlook the needs of the agricultural sector.