The Economic Survey 2012-13 has brought back some ray of hope with prediction of growth rate of 6.1 to 6.7 per cent during 2013-14.

Naina Lal Kidwai, President, FICCI, said RBI’s role is also critical in supporting growth by easing monetary policy and with the projected decline in inflation in the range of 6.2 to 6.6 per cent by March 2013, it will get enough room to bring down the interest rates.

At the same time, the Survey paves the way for aligning fuel prices with international market. Stress has been given on clearing bottlenecks for infrastructure projects that are important for the economy’s growth.

“The policy recommendations of the Survey focus largely on stimulating investments and reducing supply bottlenecks particularly in the agricultural sector,” said Chandrajit Banerjee, Director-General, CII.

The industry players also of the view that stimulus packages like that of 2009 may be required.

“Given the challenging internal and external conditions, revival of growth requires government initiative to announce a stimulus package as was done in 2009. Manufacturing is turning out a lost opportunity to India. Its poor performance further impacts the performance of traditional services.

“The present indifferent growth in manufacturing coupled with poor agriculture performance would further affect the growth prospects of services sector,” said Rajkumar Dhoot President, Assocham.

(This article was published on February 27, 2013)
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