Thursday 16 January 2014

India to gradually get back to high growth path: P. Chidambaram

Hinting further cuts in government spending, the finance minister, P. Chidambaram exuded confidence that India's fiscal deficit will be contained at 4.8 percent of the gross domestic product in the current fiscal year ending March 2014. Finance Minister was also confident that economy will gradually get back to high growth path in the next three years as and when the global economy recovers and as new measures show effect.

However, the FM acknowledged the current slowdown of the economy and attributed this to the slowdown across the world. India’s economic India's economic growth slipped to decade low of 5 per cent in 2012-13 and in the current fiscal is estimated to be around the same level. Interestingly, the economy grew at envious pace of 9% before global crisis of 2008.

Additionally, FM asserted that revised growth estimates for 2012-13 were likely to be better than the earlier projections. The government is scheduled to announce the revised growth estimates for 2012-13 on January 31 and the advance estimates for the current fiscal on February 7. Lastly, on the Current Account Deficit (CAD) front, Chidambaram asserted it to be contained at $50 billion in the current fiscal. The same soared to the all-time high of $88.2 billion or 4.8 per cent of the GDP in 2012-13.

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