As per the Chairman of the Prime Minister's Economic Advisory Council (PMEAC) C Rangarajan, Indian economy is likely to record 6-6.5 per cent growth in 2014-15 as recent policy measures taken by the government will provide impetus to growth by next fiscal. Rangarajan also asserted that the recent pick up in Indian exports will sustain in the next fiscal on the back of reviving demand in developed economies.
Regarding the country’s current account deficit (CAD), Rangarajan felt that India's current account deficit will come in at less than 3 per cent of GDP in 2014-15, however, value of gold imports is expected to be higher in next fiscal. Referring to rising food inflation in the country, Rangarajan is quite confident that food inflation will soften in the coming future. Further, he added that steep increase in food inflation was mainly due to high vegetables prices, which are expected to come down in the near term.
Indian economy’s growth slowed down to a decade low of 5 per cent in the previous fiscal on account of low investment, weak domestic demand, rupee depreciation and global economic turmoil. Further, rising inflation has become a hurdle for Indian economic growth as it has been eroding consumers and business confidence in the country.
Regarding the country’s current account deficit (CAD), Rangarajan felt that India's current account deficit will come in at less than 3 per cent of GDP in 2014-15, however, value of gold imports is expected to be higher in next fiscal. Referring to rising food inflation in the country, Rangarajan is quite confident that food inflation will soften in the coming future. Further, he added that steep increase in food inflation was mainly due to high vegetables prices, which are expected to come down in the near term.
Indian economy’s growth slowed down to a decade low of 5 per cent in the previous fiscal on account of low investment, weak domestic demand, rupee depreciation and global economic turmoil. Further, rising inflation has become a hurdle for Indian economic growth as it has been eroding consumers and business confidence in the country.
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