The "queue-limit" command configures the size of the software queue. The "tx-ring-limit" command configures the size of the hardware queue.
When using a fancy queueing mechanism like CBWFQ on an interface, IOS will automatically set the tx-ring size to a smaller value. You can tune this further using the tx-ring-limit command. In general, when using software queueing, you want the tx-ring size to be as small as possible (while being large enough to drive the interface to full capacity).
So the answer to your question is: NO, you do not need to increase the hw-queue size when increasing the software queue-limit.
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