Morgan Stanley Asia chairman and renowned economist Stephen S. Roach said the Indian government must stress on fiscal consolidation in the coming budget to enable the economy emerge stronger.
“India must do it in the current financial year because the economy is growing. This is the time to do (curb fiscal deficit) otherwise when will you do?” Roach said at a press meet.
He said the government would target to bring down the fiscal deficit to 5.5 per cent of the GDP and this represents 1.3-percentage point reduction in fiscal deficit.
Roach, on a visit to India to promote his book ‘The Next Asia’ and to address the Nasscom summit said the government must boost infrastructure growth to help India seize the growing opportunities.
“Minister Kamal Nath has put a target of $20 billion investment in 12 months for infrastructure development. It is very ambitious and it is for him to deliver,” Roach said.