Finance Minister P Chidambaram on Wednesday said he was confident that the economy will grow close to 8 per cent this fiscal, although the Prime Minister's Economic Advisory Council saw gross domestic product expansion slowing to 7.7 per cent.
'What we have to think about is, how to improve the efficiency of public sector banks.' 'You have to make decision-making more prudent, and free from government intervention.'
Sajjid Chenoy, India economist at JP Morgan is the new part-time member.
Subramanian's paper comes at a time when concerns have been raised in various quarters about the official economic growth numbers. The Economic Advisory Council-PM said the Base Year of India's income calculations were shifted to 2011-12 on the basis of recommendations of several committees with experts in national income accounting.
'This government has always been fiscally conservative. It never resorted to fiscal profligacy.'
Banks should neither be timid nor adventurous while lending as the loans of today should not become NPAs of tomorrow, he said.
'We have to think of the repercussions if public sector banks are privatised and if they go to foreign hands.'
Economic Advisory Council to the Prime Minister has identified ten themes, including economic growth and job creations that need attention.
Debroy is expected to have a role and responsibility similar to the erstwhile chairman of the Prime Minister's Economic Advisory Council
According to data released on Thursday, Wholesale Price Index-based inflation rose to seven per cent in October from 6.46 per cent in September.
Industry chambers also sought conducive policies for completion of large infrastructure projects in time.
Chief Statistician T C A Anant says this a unique crisis and should be dealt with keeping the current situation in mind.
The outbound FDI is also expected to increase, resulting in net FDI inflow of $24 billion.
'Fiscal and monetary space is more constrained in developing countries because of inflation and high borrowing cost.'
Retail inflation in February has come down to a 25-month low of 8.1 per cent.
The Reserve Bank's decision to cut interest rates will stimulate investment and help in anchoring inflationary expectations, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan said.
The rupee has recovered to trade at 63 level after hitting its life-time low of 68.85 towards August-end.
The Prime Minister's Economic Advisory Council has projected India's GDP growth at 5.3 per cent in 2013-14.
The proposed move would lead to dismantling of the administered price mechanism.
According to sources, Ahluwalia and Rangarajan separately briefed Singh about the economic situation.
Finance, oil ministry tussle over exports.
Inflation measured by the Wholesale Price Index had declined to 6.62 per cent in January. It was 7.18 per cent in December and 7.24 per cent in November.
The country's economy will start witnessing a growth of 6.5 to 7 per cent from fiscal 2023 onwards, helped by various reforms undertaken by the government so far and also as COVID-19 vaccination drive progresses, Chief Economic Advisor Krishnamurthy Subramanian said. He said the second wave of COVID-19 is unlikely to have a very significant on the economy. The country's economy contracted by 7.3 per cent in fiscal 2020-21. "Together with the reforms and focus on vaccination, I expect growth to start hitting close 6.5 to 7 per cent from FY23 onwards and accelerate from there on," Subramanian said at a virtual event organised by Dun & Bradstreet.
The council wants the government to stick to its fiscal consolidation road map.
Modern organised retail will be helpful in containing inflation and allowing foreign direct investment (FDI) in multi-brand retail leads to development of back-end infrastructure that will benefit farmers, according to C Rangarajan, Chairman of the Economic Advisory Council to the Prime Minister.
Bhalla will succeed former RBI deputy governor Subir Gokarn, who died in the US on July 30 after a brief illness.
The government should act quickly to raise diesel rates to bring them in line with global prices in order to reduce its subsidy bill, Prime Minister's Economic Advisory Council Chairman C Ranagarajan has said.
'The terminal year could yield nine per cent.'
Wholesale Price Index for the month ended March moderated to 3-year low of 5.96 per cent against Reserve Bank's projection of 6.8 per cent.
Economic growth rate had slipped to decade's low of 5 per cent in 2012-13 mainly on account of the impact of the global financial woes.
Rangarajan says there was no need to change the inflation comfort level from four-five per cent.
D Subbarao reiterated concerns over rising gold imports and its pressure on current account deficit.
FDI in retail would have a limited impact on small retailers, Chairman of PM's Economic Advisory Council C Rangarajan said.
The Indian economy grew at a faster pace of over 8 per cent in two consecutive fiscal before falling to a nine year low of 6.5 per cent in 2011-12.
The food ministry has supported the suggestion of Rangarajan panel to allow export of 2 million tons of wheat from government stocks immediately to ease pressure on storages, the Rajya Sabha was informed on Monday.
With inflation still ruling above the 9 per cent mark, Prime Minister's Economic Advisory Committee (PMEAC) on Wednesday suggested that the Reserve Bank should continue to focus on controlling the rising prices.
Why phasing out the fertiliser subsidy will affect small farmers.
High gold imports had contributed to high CAD which stood at 5.4 per cent in the second half of 2012-13 and was creating pressure on the rupee.
Raise the price of diesel and restrict supply of subsidised LPG cylinder in a year to four per family, Prime Minister's Economic Advisory Panel suggested on Friday.
The overall inflation in March fell to 5.96 per cent.
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