Another key recommendation is to eliminate revenue deficits entirely. This would free up funds for productive investments, with combined government investments expected to reach 6 per cent of GDP by FY2048.
In a dialogue at the University of Cambridge, Sanyal highlighted India's fast pace of growth last year, and said the country is anticipating a growth rate of 7 percent this year, which should be higher than all major economies.
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Among the grey skies of inflation, a widening CAD and a weaker rupee, the bright spots are an uptick in contact-intensive services, higher tax collections and the forecast of a normal and well-distributed monsoon
The ratings agency has; however, revised its 2023 growth forecast for China from 5.1 percent to 5.2 percent based on the assumption that Beijing would gradually phase out its ‘dynamic zero-Covid’ policy over the next year.
The upward revision in the growth forecast for 2022 means the rating agency sees India growing 8.4 percent in FY23 - 60 basis points faster than what the Reserve Bank of India has forecast
Nomura marked down India's GDP growth forecast marginally to 7.7 percent for the current fiscal, from 7.8 percent earlier, saying there is still no sign of an export or private capex turnaround
According to Nomura, downside risks to the growth outlook have materialised with financial conditions tightening much more than anticipated.
Credit Suisse has lowered India's growth forecast for this fiscal year to 6 percent from 6.5 percent, and for financial year 2014-15 to 7 percent from 7.5 percent earlier.
Wall Street brokerage Goldman Sachs today projected an 'above-consensus' growth of 6.4 per cent for the current fiscal on factors like the upcoming general elections which, it said, will increase government spending, lower interest rates and lead to action on the policy front.
Buckle up, because experts believe we may be headed into some rough weather.
CNBC-TV18's Sajeet manghat reports that some of the biggest institutional investors are still not convinced with finance minister Pranab Mukherjee's forecast of 7.6% for FY13.