India must curb inflation and the budget deficit to revive economic growth from near a decade low, Chief Economic Adviser Arvind Subramanian said.
Clearing infrastructure bottlenecks and improving decision making by the bureaucracy also are key to boosting the pace of expansion 8 percent, Subramanian said in an interview podcast on the International Monetary Fund’s website yesterday.
He was appointed India’s top economic adviser last week, a post lying vacant for a year after his predecessor Raghuram Rajan took charge of the central bank.
Restarting stalled projects by clearing hurdles such as coal and power shortages is also among the government’s priorities, Subramanian said. A growth rate of about 5 percent, as seen in the last two fiscal years, is “not even remotely enough” to provide jobs to India’s growing labor force.
The nation must strive to maintain an expansion rate of about 8 percent for 20-25 years, he said. Consumer-price inflation in India decelerated to 6.46 percent in September, from as much as 11.2 percent in November 2013.
The government aims to narrow the shortfall in public finances to 4.1 percent of gross domestic product in the year through March 2015, according to budget estimates. The economy grew 4.7 percent in the year ended March 31, compared with the previous period’s 4.5 percent that was the slowest in a decade.
bloomberg.com
Clearing infrastructure bottlenecks and improving decision making by the bureaucracy also are key to boosting the pace of expansion 8 percent, Subramanian said in an interview podcast on the International Monetary Fund’s website yesterday.
He was appointed India’s top economic adviser last week, a post lying vacant for a year after his predecessor Raghuram Rajan took charge of the central bank.
Restarting stalled projects by clearing hurdles such as coal and power shortages is also among the government’s priorities, Subramanian said. A growth rate of about 5 percent, as seen in the last two fiscal years, is “not even remotely enough” to provide jobs to India’s growing labor force.
The nation must strive to maintain an expansion rate of about 8 percent for 20-25 years, he said. Consumer-price inflation in India decelerated to 6.46 percent in September, from as much as 11.2 percent in November 2013.
The government aims to narrow the shortfall in public finances to 4.1 percent of gross domestic product in the year through March 2015, according to budget estimates. The economy grew 4.7 percent in the year ended March 31, compared with the previous period’s 4.5 percent that was the slowest in a decade.
bloomberg.com
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