July 12, 2014

Ratul Puri believes that if the possible slew of announced initiatives is put into action, we can achieve a GDP growth of 5.4-5.9%.

The Economic Survey accurately captures the stumbling block by stating “What is particularly worrisome is the slowdown in manufacturing growth that averaged 0.2% per annum in 2012-13 and 2013-14.” and an overall cost overrun of INR 1,57,802 crore (21.3% of the original cost) of 239 projects due to regulatory approvals, problems in land acquisition and rehabilitation, and environmental clearances .

However to achieve a growth between 5.4%-5.9% in 2014-15, the Government needs to bring sharp short term fiscal relief and focus on the finance availability and implementation cycle of projects.

As a counter to Iraq Crisis impacting the oil price and the continued volatility in imported coal pricing, Reviving of coal, steel, power, cement, and refinery production should be the focus for the country.

The Government could lift economic growth to above 8 percent in the time frame by implementing the five-year target of investing $1 trillion in infrastructure by 2017, with half coming from the private sector. Solid beginning to achieving above percent growth – says Ratul Puri.

This article is sourced from Ratul Puri’s Blog