Times of Oman
Price in RO
24ct / gm
22ct / gm
Forex Rates vs R01
Back to Homepage
India’s 4.7% growth a concern for new Prime Minister
May 30, 2014 , 8 : 50 pm GST
SAVE THIS ARTICLE
Persistent tightening of both monetary and fiscal policy to curb inflation has fuelled downward pressure on India’s growth. Photo – Reuters
India reported Frrday a second straight year of sub-five per cent growth, underscoring challenges facing new Prime Minister Narendra Modi to revive Asia's third-largest economy.
The economy grew by 4.7 per cent in the financial year to March 2014, below the 4.9 estimate of the previous left-leaning Congress ousted in elections earlier this month by voters angered by economic slowdown, soaring consumer inflation and widespread corruption.
The data would be 'a reminder' for the Bharatiya Janata Party (BJP) government "that a lot of work needs to be done in the economy before growth can pick up again," Nomura Asia interest strategist Vivek Rajpal said ahead of the figures.
Economic growth has crumbled from nearly double-digit rates just three years ago — a level analysts say India must reach again to generate jobs for its vast young population.
The economy expanded 4.6 per cent in the final fourth quarter to March 31 from the same period a year earlier, slightly undershooting analysts' forecasts.
Persistent tightening of both monetary and fiscal policy to curb inflation has fuelled downward pressure on growth. The economy expanded by a decade low of 4.5 per cent in the previous year.
Manufacturing shrank 1.4 per cent during the final quarter of 2013-14 from a year earlier. But farm output climbed 6.3 per cent in the quarter between January and March.
Modi, sworn in on Monday as India's premier and known for his fast decision-making during more than a dozen years as chief minister of prosperous western Gujarat state, has spelt out 10 priority areas to revitalise the economy.
These include swift implementation of a national goods and services tax to speed up business transactions, lifting a ban on mining in dense forest areas and moves to raise the foreign investment cap to revitalise India's ageing military equipment.
Modi trumpeted 'the start of a new era' after the BJP won the first majority in three decades.
Business leaders want him to dismantle the array of bureaucratic controls that have stalled multibillion-dollar investment projects, overhaul creaking infrastructure that impedes productivity, simplify tax levies and ease cumbersome land acquisition rules.
India's new finance minister Arun Jaitley said earlier in the week he realised that he was taking over at a 'challenging time'.
Aside from Modi, Jaitley will be the most important figure in breathing life into the new prime minister's promise of 'better days ahead' and his 'Modinomics' mantra of 'minimum government, maximum governance'.
Rate this Article
Rates : 2, Average : 3
Post a Comment
Did you like this section? Leave a comment!
Your Name :
Your Email Address :
Your Comment :
Enter Image Text:
No Comments Posted
Latest in this section
Oman’s 2014 corporate earnings may grow 6.2 per cent
Oman's Haya Water to invest OMR100m annually to build sewage projects
Oman's share index falls marginally
Smart rise in GDP pushes India's Sensex, Nifty to new peak
Schleupen to deploy risk management systems at Oman Oil
TOP RATED ARTICLES
Rare parrot fish pair detected off Masirah Island in Oman
Cargo port shifts from Muscat base to Sohar Industrial Port
Researcher awarded Australian Laureate Fellowship
Kerala to prepare marine biodiversity map
English Premier League in focus: Liverpool 'gamble' Balotelli debuts against Tottenham
More in News
It's Different! Discovering pop legend Michael Jackson's popularity in rural India
High-end 'micro-flats' latest trend for Hong Kong home buyers
More than just a moustache - Adolf Hitler vs Charlie Chaplin
Urban gardens greening Berlin rooftops, airfield
Tips for writing a good article
More in Features
New conflicts have put the whole of MENA into turmoil
Modi’s mission to save the world must begin at home
Will the East Asian dream augur well for India now?
Alas! Iraq has already disintegrated
Winds of anarchy and chaos in Middle East
More in Columns
Copyright © 2012 Muscat Press & Publishing House SAOC. All rights reserved. Times of Oman is not responsible for the content of external internet sites.
For reprint rights contact:
TOO Online Editorial