Economy to grow at 8.4% over next 5 years: Crisil

Contrary to the government’s projection of double-digit GDP growth over the next few years, rating agency Crisil has projected a growth rate of 8.4% as it sees supply constraints hindering ambitious growth projections. HT reports.

Contrary to the government’s projection of double-digit GDP growth over the next few years, rating agency Crisil has projected a growth rate of 8.4% as it sees supply constraints hindering ambitious growth projections.

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While domestic demand, robust consumption and investment rates are likely to support 8.4% growth over the next five years, there are five supply side issues that need to be addressed, the rating agency said. If that is done, India can be on a sustained 10% growth trajectory.

“The five key issues that need to be addressed to unleash India's growth potential include the quantity and quality of physical infrastructure, skill shortages in its bulging population, faltering agriculture and consequent high food inflation, fiscal inflexibility to spend on health, education and physical infrastructure, and governance deficit,” said Roopa Kudva, managing director and CEO, Crisil.