NEW DELHI: There is some hope for the economy as it is expected to grow in the 5.4 to 5.9 per cent range for the first time in two years, after registering below 5 per cent growth, according to the Economic Survey for 2013-14 that was on Wednesday tabled in Parliament by Finance Minister Arun Jaitley. The survey, however, warned that the forecast of poor monsoon because of the El Nino weather formation and external reasons could act as an impediment for India to get back on the growth track.
Jaitley said, “The newly-released Economic Survey shows the gravity of the economic situation that needs correction.” He pointed out that, “Inflation needs to be moderated further. Fiscal deficit needs downward correction over the next two years.”
The Economic Survey, an annual exercise, is prepared by Finance Ministry advisers and is delivered a day before the Budget and is considered a blueprint for the government’s medium-term economic planning. On fiscal health the survey said, “The growth slowdown in the last two years was broad based, affecting in particular the industry. Inflation too declined during this period, but continued to be above the comfort zone, owing primarily to elevated level of food inflation.”
The survey said moderation in inflation will help ease monetary policy stance and help revive investor confidence.
The priority of the government should be to revive business sentiments “that could be at the heart of restarting the investment cycle,” the survey said. According to the survey, the economy can look forward to better growth prospects in 2014-15 and beyond.
The survey further said the measures taken by the government to improve investment climate and governance could push up growth to 7-8 per cent.