India Inc has welcomed the positive estimate of the economic growth projected in the Economic Review presented by the Prime Minister’s Economic Advisory Council (PMEAC), headed by C. Rangarajan.
“This is in line with the forecast made by CII last week, where we have pegged the growth of the economy in the range of 6-6.4 per cent for the current fiscal. CII is heartened by the fact that the upturn predicated will be broad-based, encompassing all sectors of the economy,” Chandrajit Banerjee, Director- General, CII, said.
However, he added a note of warning and called for focus on stepping up economic reforms, since recovery is yet to take a firm footing.
Assocham raised concerns on widening current account deficit, dipping foreign direct investment and the likelihood of inflation persisting at six per cent over the coming fiscal.
Naina Lal Kidwai, President, FICCI, hopes that with the inflation numbers placed at six per cent for 2013-14, the Reserve Bank of India will ease its tough monetary stance and help reduce interest rates.
“FICCI has been reiterating that in the long run it is important to target food inflation by addressing supply side bottlenecks,” she said.
She added that it is important to execute projects in a timely fashion to showcase the Government’s intent to encourage investments.