India to hit 6% growth next fiscal: Montek
Planning Commission deputy chairman Montek Singh Ahluwalia said on Friday that India can achieve 6% economic growth next fiscal and the second half of this fiscal could be better than the first.business Updated: Nov 29, 2013 15:17 IST
Enthused by the improvements expected in macro economic situation soon, Planning Commission deputy chairman Montek Singh Ahluwalia said on Friday that India can achieve 6% economic growth next fiscal and that the second half of this fiscal could be better than the first.
"I would hope that if my judgement, that the second half of the current (fiscal) year shows more than 5%, then it is not unreasonable to expect more than 6% in the next financial year," he told CNBC-TV18.
Ahluwalia's comments came ahead of the release of second quarter (July-September) Gross Domestic Product (GDP) data by the government.
India's GDP grew at a decade low of 5% last fiscal.
There seems to be persistent sluggishness in the economy so far as GDP growth slowed down to 4.4% in April-June quarter from 4.8% in January-March quarter this year.
The economy grew at 5.4% in corresponding quarter (April-June) last fiscal.
Ahluwalia said he expected all political uncertainty, that is inevitably associated with the general election, will be over (by next year) and this would give enough legislative time for many held-up moves.
Explaining further, he said, ".. for example one of the biggest things that would impact the economy and the investment climate is the goods and services tax (GST)."
"... I am hoping that if early next year, after the general election, the GST is put through even if it is implemented several months later, the positive impact on expectations will be very high. So, going for 6 plus in fiscal year 2014-15 is a perfectly reasonable thing to do and then go to 7% plus and then to 8% is not unreasonable," he added.
Ahluwalia's assumption of improving macro economic scenario is based on the impact of good monsoon and expected improvement in current account and fiscal deficit.
Besides, he foresees the rupee pricing helping exporters and making domestic producers more competitive.