Confederation of Indian Industry on Thursday cautioned that agricultural growth could be negative two per cent, which in turn will pull down gross domestic product growth in 2004-05 if the monsoon continues to play truant for the next two weeks.

"Many districts are facing deficit rains and if the situation persists for the next two weeks there could be a negative two per cent growth in agriculture during the fiscal," Confederation of Indian Industry president Sunil Kant Munjal told reporters in Mumbai.

Any negative growth in agriculture would pull down the GDP, which is expected to be about seven per cent this fiscal, he said, adding, the situation would be clear in few weeks.

As on July 21, 2004, 17 of the total 36 meteorological sub-divisions had deficient rainfall and though this was not high as the number of deficient sub-divisions in the drought year (2002) was 22 of 36, it is still much worse than other years.

There was a clear overall demand growth and the order books of the companies are better than before, he said, adding that recent Budget announcements would spurt rural demand.

On job reservations in the private sector, Munjal said it was an issue of concern and CII was in dialogue with the government.

There was a need for large-scale skill upgradation programme for all sections, he said, adding CII had tied up with skill upgradation company for it.

Unveiling the developmental agenda of CII, Munjal said an annualised growth rate of 7-8 per cent over a decade would be required to make the country a $2 trillion economy and double the per capita income.

He said the key challenges before the economy included ensuring even growth across all sectors, higher investment in infrastructure and tackling the high deficits of the center and states, rationalising taxes and managing inflation.

Munjal said CII's developmental agenda focused on rural economy, infrastructure, manufacturing, SMEs, services, social and global development, and global networking.

The chamber has formed six new taskforces in the fields of education, energy, health, rural economy, tourism and water in the current year.