The report recommended fiscal deficit to be cut to 2.8 per cent in 2020-21 fiscal and to 2.5 per cent by FY2023.
India‘s sugar crisis is at its peak with almost Rs 21,000 crore remaining unpaid towards farmers. The government has refused to move to the Rangarajan formula of linking sugarcane prices to sugar. The industry has once again threatened to close sugar mills and the banks have refused to lend further to this debt ridden sector.
FY15 saw the farmers grappling with surplus stock of around 35 lakh tons of sugar. Given the low prices of sugar and increasing pressure from banks to repay debt that crossed Rs 36,600 crore way back in FY13; maintaining cash flows have become a big problem.
The approval is effective from today while Highway Ministry and NHAI will take it up on case-to-case basis now.
Given the performance in the first nine months and GDP growth of 4.9 per cent projected by the CSO in its advance estimates for this financial year, the economy must expand 5.7 per cent in the fourth quarter ending March.
"Delay in completion of projects and critical inputs is hitting the economic growth," says C. Rangarajan.
Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan says one can expect tremendous pressure on increasing the plan expenditure that Finance Minister P Chidambaram left unchanghed in today's Vote on Account.
In an interview to CNBC-TV18's Latha Venkatesh, C Rangarajan, chairman, Economic Advisory Council, says that if inflation moves along the direction expected, today‘s rate hike may perhaps be the last in the series of raising the policy rate.
Moily said there were problems earlier in getting bidders for some blocks because requisite clearances were not in place. He, however, is hopeful that CCEA approval will come by February 15 and roadshows will start thereafter.
The panel, headed by Andhra Pradesh MP Aruna Kumar Vundavalli, felt Russia which exports 40 to 50 per cent of its gas to Europe at a price of about USD 8.77 per million British thermal unit, could be a better indicator of gas price.
Rangarajan said that several factors have contributed to decline in gold imports, however, he also warned that pick-up in gold imports is likely during the upcoming festive season.
The Sensex is down 106.97 points or 0.54 percent at 19625.79, and the Nifty slips 45.40 points or 0.78 percent at 5805.20. About 895 shares have advanced, 1177 shares declined, and 115 shares are unchanged.
Kiran Mazumdar Shaw, CMD of Biocon says that the government must send thr right signals to ensure investment sentiment is boosted in the country.
Non-performing Assets (NPAs) of banks have been going up for the last two years due to slowdown in the economy. The gross NPAs of some public sector banks, including State Bank of India and Punjab National Bank have crossed 4 per cent of the total assets at the end of March, 2013.
Although Wholesale Price Index (WPI) inflation brought about some cheer in the market after weak IIP and auto sales numbers, the growth in food inflation number was a dampner.
In an interview to CNBC-TV18, C Rangarajan, chairman, PMEAC says the various reforms (easing FDI caps, regular petrol/diesel /gas price hikes, etc) taken by the Government to boost the economy and the sentiment around it, will reap benefits in the second half of FY14.
Rangarajan, chairman, Prime Minister Economic Advisory Council (PMEAC) believes that India can still manage to get a growth rate of close to 6 percent in current financial year.
"There is nothing wrong in fixing gas price inline with international prices," Rangarajan told CNBC-TV18.
The central bank is faced with two pressing problems, current account gap and a falling rupee, which is constraining it from cutting rates, says C Rangarajan. The RBI had refrained form cutting rates in its June 17 policy citing inflationary pressures.
Gold demand is likely to fall as easing of general inflation rate will make investment in financial products more attractive than the yellow metal, chairman of the Prime Minister‘s Economic Advisory Council, C Rangarajan, said on Wednesday.
Rangarajan believes that decline in both WPI and CPI inflation in April indicates that inflation is moving towards comfort zone, however he raised concerns about huge gap between the two.
PM's Economic Advisory panel chairman C Rangarajan, in December, submitted his recommendations on the new gas price formula to the Prime Minister.
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Robert Prior-Wandesforde of Credit Suisse, is optimistic on the inflation story. He expects headline inflation to come down between 5-5.5 percent. For the fiscal year he expects inflation to average below 6 percent.
Head of the Prime Minister‘s Economic Advisory Council (PMEAC) C Rangarajan Tuesday said the body underestimated the impact of the delayed projects on economic output, while making its estimates for 2012-13.