Distress in farming sector can cause dire economic consequences: Rangrajan

New Delhi, Aug 12 (ANI): The Chairman of the Prime Minister's Economic Advisory Committee, C. Rangrajan, said on Wednesday that distress in the farm sector could have serious consequences on the economy.

Rangrajan, asked state governments to raise additional resources to provide relief to drought-hit people and also to increase the import of essential commodities to check the price rise in the country.

"Distress in agriculture due to drought will have other serious dimensions. The government may have to find additional resources to meet the requirements of the affected people," Rangrajan said.

He said the growth rate could slip to 6 to 6.5 percent from 6.7 percent of the previous fiscal due to the impact of drought on our economy.

"The Indian economy has been doing well in the past years but the growth rate came down to 6.7 percent in the previous fiscal due to the international financial crisis and this year the economy will grow between 6 and 6.5 percent as drought will have dampening impact on the overall growth rate," Rangrajan said. (ANI)