The government will soon embark on an exercise to review the progress and challenges that face each sector, including agriculture and infrastructure, in a bid to address bottlenecks and pending issues better.
According to a senior finance ministry official, who did not wish to be identified, highlights of this study are likely to feature in the NDA government’s mid-year report card as well.
“More than the GDP numbers, the focus would now be on each sector and its performance in 2015-16… accordingly we can assess the shortcomings or strengths and thereby chalk out a roadmap,” the official told HT. “Much of it would be highlighted in the mid-year economic review.”
According to data released earlier this week, India’s gross domestic product (GDP) grew at an annualised 7.4% during the July-September quarter, sparking optimism about the overall economic situation.
The department of economic affairs will also start preparing the mid-year review of the economy soon. Sources said the growth figures may also be revised. Presenting the Union Budget, finance minister Arun Jaitley had projected economic growth at 8-8.5% for 2015-16. However, indications are that this would be around 7.5% only.
While sectors such as manufacturing and services have performed well till now, driving overall growth, other areas such as exports remain subdued, with the global growth rate dipping. In this context, the fact that agriculture, despite a deficient monsoon, has grown by 2.2% is notable.
Finance ministry officials said that with this approach, the government is trying to address challenges and bolster business confidence and draw domestic investments. Overall credit demand from companies has been subdued in recent months.
Reserve Bank of India governor Raghuram Rajan said the low capacity utilisation in factories is a matter of concern. He said factories were working at about 30% below capacity.