Narendra Modi govt needs to face economic challenges: VS Vyas

JAIPUR: Eminent economist V S Vyas today said the new government at the Centre led by Prime Minister Narendra Modi has not only generated wide expectations among millions of people across the country but has also shifted the focus on major economic challenges.

The foremost challenges and suggested meaningful strategies to confront them with are the emphasis on revival of growth, and at the same time, the new government must dispel the impression of "policy paralysis", he said.

Vyas was delivering a lecture at the Institute of Development Studies (IDS) here, where he is Professor Emeritus.

He has also been a former member of the Prime Minister's Economic Advisory Council.

Vyas pointed out that the three major challenges before the government in New Delhi were deceleration of rate of growth, high inflation and slow growth in employment.

From the average growth of 8.8 per cent per year during 2005-06 to 2008-09, there has been a progressive decline in rate of growth, and this year it is estimated to touch 4.5 to 4.7 per cent, he added.