GROWTH RATE OF 5.7% TO 5.9% ACHIEVABLE, SAYS MAYARAM

NEW DELHI: The government on Monday expressed confidence that a growth rate of 5.7% to 5.9% would be easily achievable during the current fiscal.

Speaking at a function organised by the Madras Chamber of Commerce & Industry in Chennai, finance secretary Arvind Mayaram said an outlook upgrade by ratings agency S&P from negative to stable reaffirms that the economy was in a much better condition than it was a year ago.

Mayaram said the economic conditions were becoming favourable for a cut in interest rates. “Conditions are becoming favourable for a more benign monetary policy going forward in this year,” he said ahead of the Reserve Bank’s monetary policy on Tuesday.

Mayaram said the indices in the first half of 2014-15 appear to be more robust, with the first quarter GDP growth at 5.7%, inflation easing and a healthier external account balance.

He also said that the investment data in September shows an uptick with a growth of 9.8% as against 6.7% in the year-ago period. He added that the fiscal deficit target of 4.1% for 2014-15 is achievable.

He said that he is confident that the steps taken by the government to destress projects and simplify decision-making will show increasingly better results in the coming quarters.

Foreign institutional investors’ net investment in India this year have reached $34.2 billion compared to $12.13 billion in the entire year of 2013, he said. On ease of doing business, he said that a revision of central government policies is underway, most of the action lies with the states.