English_Master March 22, 2016 No Comments
ONLY FASTER INFRASTRUCTURE CAN SUSTAIN THE GROWTH MOMENTUM Beating all expectations, the Indian economy grew at 9.4 per cent in 2006-07. Five years back if you had asked any expert tracking the economy, whether India could sustain a growth rate of over 8.5 per cent, the answer would have been an emphatic no. The pedestrian growth of below 5 per cent between 2000 and 2003 had made the Planning Commission target of 8 per cent growth for the Tenth plan (2002-03 to 2006-07) seem like a dream. With the economy growing at 8.6 per cent in the last four years, the actual growth for the Tenth plan touched 7.6 per cent. And all this in the midst of inadequate infrastructure oil shock, volatility in the agricultural sector and rising inter¬≠est rates. This growth makes India the second fastest growing economy after China. So what is behind India’s growth story? Is it sustainable? The growth surge started in 2003-04 when the economy grew at 8.5 per cent. The momentum had both external and domestic triggers. Exports were growing despite a gradual appreciation of the rupee. Domestic consumption demand was boosted by low prices, rising per capita income and lower tax rates. A sustained increase in demand increased the capacity utilization,...
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