"I would hope that if my judgement, that the second half of the current (fiscal) year shows more than 5 per cent, then it is not unreasonable to expect more than 6 percent in the next financial year," he told a business channel. Ahluwalia's comments came ahead of the release of second quarter (July-September) Gross Domestic Product (GDP) data by the government.
India's GDP grew at a decade low of 5 percent last fiscal. There seems to be persistent sluggishness in the economy so far as GDP growth slowed down to 4.4 percent in April-June quarter from 4.8 percent in January-March quarter this year.
The economy grew at 5.4 percent in corresponding quarter (April-June) last fiscal. Ahluwalia said he expected all political uncertainty, that is inevitably associated with the general election, will be over (by next year) and this would give enough legislative time for many held-up moves.
Explaining further, he said, ".. For example one of the biggest things that would impact the economy and the investment climate is the goods and services tax (GST).""... I am hoping that if early next year, after the general election, the GST is put through even if it is implemented several months later, the positive impact on expectations will be very high. So, going for 6 plus in fiscal year 2014-15 is a perfectly reasonable thing to do and then go to 7 percent plus and then to 8 percent is not unreasonable," he added.
Ahluwalia's assumption of improving macro economic scenario is based on the impact of good monsoon and expected improvement in current account and fiscal deficit.
Besides, he foresees the rupee pricing helping exporters and making domestic producers more competitive.