Monday 27 January 2014

India's economic growth slows down mainly due to domestic factors: Ahluwalia

Amid rising concerns over the prevailing economic slowdown, Planning Commission Deputy Chairman Montek Singh Ahluwalia has attributed the decline in India's growth rate mainly to domestic factors and expressed the need for the government to take quick decisions to boost the economic growth.

Highlighting that the government cannot blame the global factors entirely for the country's flat growth, Ahluwalia asserted that the one third of prevailing economic downturn could be attributed to global factors and two-thirds to domestic factors. In the previous fiscal, India's economy’s growth slowed down to a decade low of 5 percent owing to the global slowdown as well as domestic factors such as high inflation and interest rates. The growth is estimated to remain around the same level in current fiscal.

By adding further, Ahluwalia said that India could potentially sustain a growth rate of 7 percent in future. Referring to growth in infrastructure sector, he asserted that major development in country’s infrastructure would be taken place after India's general elections in May.

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