The Economic Survey has painted a promising picture of the economy with GDP growth rate slated to be in the range of 8.1 to 8.5 per cent in the coming year, according to 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,” Jyotsna Suri, President, FICCI , said.

It drops a clear indication that the Government would stay on course to economic reforms despite the political roadblocks in Parliament, Assocham President Rana Kapoor said.

The Survey has rightly suggested elimination of the revenue deficit and ensuring that overtime borrowing is only for productive capital expenditure, Suri added.

“Maintaining a fine balance between the short-term needs to boost public investment to revive growth without losing sight of the imperative need to continue fiscal prudence is much needed,” CII said in a statement.

Stating that the economy is looking up and the growth prospects are bright, Alok B Shriram, President, PHD Chamber, said decline in the rate of gross domestic savings as indicated by the Survey during the recent years vis-à-vis decline in the rate of household physical savings needs to be seriously looked at.

“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.

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