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Indian economy is likely to record 6-6.5 per cent growth in 2014-15 with many of the recent policy actions bearing fruit in the next fiscal, C. Rangarajan, Chairman of the Prime Minister's Economic Advisory Council, has said.
This growth forecast is much higher than the 5 per cent GDP growth level estimated for the current fiscal.
Rangarajan expressed confidence that Indian economy will do much better in 2014 than in 2013.
"Once the general elections are over, I believe there will be greater certainty in the environment and various policy actions already taken recently will have full impact in next fiscal," Rangarajan told Business Line here.
PICK UP IN EXPORTS
Rangarajan also felt that the recent pick up in Indian exports will sustain in the next fiscal also.
"The US Fed tapering coinciding with the strengthening of the US economy would enable us to sustain the pick up in our exports," he said.
He also expects oil prices to continue to remain moderate in 2014.
GOOD TIDINGS ON CAD
India's current account deficit will come in at below 3 per cent of GDP in 2014-15 also, according to Rangarajan.
However, value of gold imports next fiscal is expected to be higher, he added.
Policymakers are quite confident that CAD for the current fiscal will be below $50 billion, much lower than earlier projected levels of $70 billion.
SOFTENING FOOD INFLATION
Rangarajan is quite confident that food inflation will soften and the December print expected in mid-January will confirm this trend.
Steep increase in vegetable prices was the main reason for the climb in food inflation.
But things have improved now and one finds that the prices of onions and other vegetables have seen a decline in recent days, he said.
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