Economy Stabilising, Will Do Better in Coming Months: Govt - The New Indian Express

Economy Stabilising, Will Do Better in Coming Months: Govt

Published: 25th March 2014 06:00 AM

Last Updated: 25th March 2014 02:25 AM

Economic Affairs Secretary, Arvind Mayaram on Monday said the Indian economy will improve further in the coming months as was evident from the fact that the rupee as well as the stock markets were stabilizing.

“I certainly believe ... the economy has stabilised and that is reflected in rupee and stock markets. And going forward, I think, we will see growth numbers also improving, Mayaram told reporters here.

“I think we are surely in a position where we can say that, India is among the best among the emerging markets, and this will continue to be so in future,” Mayaram said.

As per the Central Statistical Organisation estimates, the economy would expand 4.9 per cent in the current fiscal ending March, up from 4.5 per cent recorded in 2012-13.

Growth in the first nine months (April-December) of the current fiscal was 4.6 per cent. The economy must expand by 5.7 per cent in January-March quarter to achieve the estimated GDP expansion of 4.9 per cent in 2013-14.

On the back of strong foreign investor flows, the stock market barometer BSE Sensex Monday jumped more than 1 per cent to log new lifetime high, while the rupee appreciated 24 paise to trade at 60.65 against the US dollar.

Inflation is showing signs of cooling. The Wholesale Price Index-based inflation fell to nine-month low of 4.68 per cent, while retail inflation slowed to a 25-month low of 8.1 per cent in February.

With the mid-term monetary policy review slated for April 1, it is expected that the Indian economy could find a new direction if the apex bank, Reserve Bank of India decides to ease the interest rates that  have remained unchanged in the last three reviews, leading to high cost of capital and poor investment sentiment.

Pre-poll optimism

■ Economy to expand 4.9 per cent in the current fiscal ending March

■ Headline inflation has eased considerably

■ Markets have been strong this year aided by robust FII flows and optimism related to general elections

■ Buoyancy in banking counters as majority expects there would be no change in policy rates

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