Macro-economic indicators must improve for 9% growth: Pranab Mukherjee

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Addressing an AIMA event, President of India Pranab Mukherjee stressed on the importance of improvement in the macro-economic parameters like inflation, current account deficit and fiscal balance to achieve 9 per cent growth.

"...unless many of our current macro-economic indicators like price level, fiscal balance and current account balance improves, it will be difficult to revive economic growth to the 9 per cent plus levels which is absolutely imperative if we want to achieve the objective of removing poverty," President said.

India's economic growth rate slipped from 9.3 per cent in 2010-11 to 6.2 per cent in 2011-12. It is estimated to fall to 5 per cent in 2012-13.

"It is possible for us to re-enter the 7-8 per cent growth bracket in the next two to three years. But for that, we must revitalise investments in the country," Mukherjee said.

In order to deal with the slowdown, government is looking to bring the fiscal deficit down to 3 per cent of GDP by 2016-17 from 5.2 per cent in 2012-13.

Steps are also being taken to reduce the current account deficit, which touched a historic high of 6.7 per cent of the GDP in the quarter ended December 2012.

Although the WPI inflation moderated to 6.84 per cent in February, retail inflation continued to remain a matter of concern at 10.91 per cent in the same month.

Read more about: economy
Story first published: Friday, April 12, 2013, 14:30 [IST]
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