‘Situation not yet critical to threaten GDP projections’
The recent rise in interest rates, inflation, high crude price and partial outflow of FII investments due to weakness in the capital market, does not call for any change in growth projections for the current fiscal, a senior government official said.
By PTI |
KOLKATA: The recent rise in interest rates, inflation, high crude price and partial outflow of FII investments due to weakness in the capital market, does not call for any change in growth projections for the current fiscal, a senior government official said today.
"The situation is not yet critical that needs for change in growth projections, atleast for now," Chief Economic Advisor to the Union government Ashok Lahiri told reporters here on the sidelines of an interactive session with members of the Bengal National Chamber of Commerce and Industry (BNCCI).
The growth projections for the currently fiscal by Reserve Bank of India was between eight and 8.5 per cent.
Lahiri, however, expressed concerns which are impediments to growth are high crude price and inflation. Inflation has touched 5.24 per cent last week from 4.72 per cent during the week before.
The government, Lahiri said, is focusing on how to increase the per capital income of the country. It has found that if GDP growth rate is seven per cent then it would take close to 10 years for a country to double the per-capita income.
Lahiri called for huge investments in the infrastructure sector, education and health. The present total funding shortage is estimated at USD 1.8 trillion.
"The second generation reforms also require in reducing untarget subsidy in food, fertiliser, petroleum, financial sector, public expenditure and restructring public sector," Lahiri said and stressed for double digit growth in manufacturing sector and fiscal consolidation.
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