Economic Survey 2014: Commitment to fiscal consolidation, inflation constraining growth, says DK Srivastava

The Economic Survey for 2013-14 which was tabled by Finance Minister Arun Jaitley today, offers the key message that a commitment to fiscal consolidation and the inflationary overhang are constraining the scope for accelerating growth, given the deficient monsoon, sluggish export prospects and global crude price pressures, according to DK Srivastava, Chief Policy Advisor, EY.

"Corrective policies for making agricultural markets function better, containing subsidies and increasing government capital spending will yield desirable results that will necessarily be slow, permitting only moderate recovery in FY15," Srivastava said.

It may be noted in this regard, that according to the survey, the Indian economy is likely to grow in the range of 5.4 to 5.9 per cent in 2014-15 overcoming the sub-5 per cent GDP growth of the past two years, even as poor monsoon and disturbed external environment remain a cause for concern.

However the Survey, released a day ahead of the Union Budget for 2014-15, expects that moderation in inflation will ease the monetary policy stance and revive the confidence of investors.