|Follow us on:|
The Prime Minister’s Economic Advisory Council (PMEAC) Chairman Chakravarthi Rangarajan said the country’s economy “will grow at 5.3 per cent in 2013-14”.
The PMEAC had in April projected that the Indian economy would grow 6.4 per cent in the current financial year.
India’s gross domestic product (GDP) grew by five per cent in 2012-13.
The Reserve Bank of India (RBI) has also lowered its growth projection for this fiscal year to 5.5 per cent from 5.7 per cent.
In order to promote growth, Rangarajan suggested that the government should liberalise FDI investment norms, resolve tax concerns of the industry, fast track public sector investment and initiate measures to contain fiscal deficit.
Referring to the external sector, Dr Rangarajan expressed hope that the current account deficit (CAD) in 2013-14 would come down to $70 billion from $88.2 billion a year ago.
Rangarajan also discussed the volatility in the currency market and said the rupee “at the current level is well corrected. Stability is returning to the foreign exchange market. As capital flows return and as CAD begins to fall, this tendency will strengthen”.
However, he added the current stance of monetary policy should continue until stability in the rupee is achieved.