ECONOMIC SURVEY 2014-15. India Inc buoyed by prospect of public investments

The Survey paints a promising picture of the economy, with GDP slated to grow between 8.1 per cent and 8.5 per cent in the coming year, said India Inc.

“Given that the investment cycle has not gained traction on account of the private sector being constrained by weak demand, regulatory impediments and factors hindering competitiveness, the Survey has highlighted the centrality of public investments as an engine of growth in the near term to crowd in private investments,” said Jyotsna Suri, President of industry body Federation of Indian Chambers of Commerce and Industry.

It drops a clear indication that the Centre would continue economic reforms despite the political roadblocks in Parliament, Assocham President Rana Kapoor said. “Maintaining a fine balance between the short-term need to boost public investment to revive growth without losing sight of the imperative need to continue fiscal prudence is much needed,” the Confederation of Indian Industry said in a statement.

Growth prospects Stating that the economy is looking up and the growth prospects are bright, Alok B Shriram, President, PHD Chamber, said the decline in the rate of gross domestic savings during the recent years compared with the decline in the rate of household physical savings needs to be seriously looked at.

Manufacturing activity “As the survey indicates, the manufacturing productivity in India lags behind other nations and registered manufacturing couldn’t bridge regional disparities in India.

“We need to address seriously the distortions in labour market, capital market, land market and skilling of our youth to become competitive,” Shriram added.