News / Asia

India to Step up Economic Growth, But Inflation Remains a Concern

A man pulls a hand-drawn cart loaded with sacks of chickpeas on a main road in Mumbai,  April 21, 2011
A man pulls a hand-drawn cart loaded with sacks of chickpeas on a main road in Mumbai, April 21, 2011

India is planning to increase the pace of economic growth in the coming years.

At a meeting Thursday to set out the future path of the country's economic policy, Prime Minister Manmohan Singh said India will set a target growth rate of nine to 9.5 percent from the year 2012 to 2017.

After a swift recovery from the global financial slowdown, India’s economy has been growing at a rate of about eight percent in the last two years. Companies have posted good profits and employment is growing from strong consumer demand for everything from cars to houses.    

However, economists have warned that high inflation could slow down India's economic momentum, making it difficult to achieve the ambitious target of more than nine percent growth.

Government advisers admit that stubbornly high inflation poses a challenge. Despite efforts to slow rising prices, inflation remained at a higher than forecast nine percent in March.     

The Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia, says the government plans to tackle inflation by improving its fiscal balance. He says in the coming years, India aims to substantially cut its fiscal deficit, which is presently about five percent.      

"We are working on the assumption that we will achieve this year’s fiscal deficit target of 4.6 per [percent], and then it will go down to 4.1.  Then it will go down to 3.5, and in the year 2014-15 it will become three [percent] and then it will remain at three," Ahluwalia said.

Ahluwalia says that increasing farm output will also reduce pressure on rising prices and tame inflation. Food prices, which grew by nearly 18 percent last year, have contributed most to inflation in the past year.

Weather forecasters have said that monsoon rains, which are vital for farm productivity, will be normal this year. This has raised hopes that agricultural productivity will be on track, and food prices will not rise further.  

India is Asia’s second fastest growing economy. Some analysts have said that in the coming years India could outpace China, which is the world’s fastest growing major economy.

You May Like

Is Air Travel Safe?

Aviation expert says despite tragic losses of Malaysian Airlines flights 370 and 17, industry experienced lowest fatality rate in recorded history last year More

Multimedia 100 Days Later, Nigerian Girls Still Held

Activists holding rallies in Nigeria and several other countries to mark 100th day of captivity for more than 200 schoolgirls being held by Boko Haram More

Chocolate Too Bitter? Swap Sugar for Mushrooms

US food technology company develops fermentation process using mushrooms to reduce bitterness in cocoa beans, believes it will cut sugar content in candy More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Carriers Suspend Travel to Israeli
X
Carolyn Presutti
July 23, 2014 1:21 AM
The United States is prohibiting American carriers from flying to Israel's airport in Tel Aviv for 24 hours, because of rising violence between Israel and Hamas militants. The action was announced on Tuesday, after a rocket fired by Hamas militants in the Gaza Strip landed near the airport. As VOA's Carolyn Presutti tells us, international officials soon may have to determine which combat zones are too dangerous for commercial flights.
Video

Video US Carriers Suspend Travel to Israel

The United States is prohibiting American carriers from flying to Israel's airport in Tel Aviv for 24 hours, because of rising violence between Israel and Hamas militants. The action was announced on Tuesday, after a rocket fired by Hamas militants in the Gaza Strip landed near the airport. As VOA's Carolyn Presutti tells us, international officials soon may have to determine which combat zones are too dangerous for commercial flights.
Video

Video NASA Focuses on Earth-Like Planets

For decades, looking for life elsewhere in the universe meant listening for signals that could be from distant civilizations. But recent breakthroughs in space technology refocused some of that effort toward finding planets that may harbor life, even in its primitive form. VOA’s George Putic reports on a recent panel discussion at NASA’s headquarters, in Washington.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video Relic of Saint Draws Catholics Worried About Immigration Issue

A Roman Catholic saint who is a figure of devotion for those crossing the border into the United States is attracting believers concerned about the plight of undocumented immigrants. Mike O'Sullivan reports from Los Angeles, where a relic of Saint Toribio has drawn thousands to local churches.
Video

Video US Awards Medal of Honor for Heroics in Bloodiest of Afghan Battles

U.S. combat troops are withdrawing from Afghanistan, on pace to leave the country by the end of this year. But on Monday, U.S. President Barack Obama took time to honor a soldier whose actions while under fire in Afghanistan earned him the Medal of Honor. VOA's Jeff Seldin has more from the Pentagon.
Video

Video Ukraine Rebels Surrender MH17 Black Boxes

After days of negotiations, a senior separatist leader handed over two black boxes from an airliner downed over eastern Ukraine to Malaysian experts early Tuesday. While on Monday, the U.N. Security Council unanimously demanded that armed groups controlling the crash site allow safe and unrestricted access to the wreckage.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.
Video

Video Nature of Space Exploration Enters New Age

Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.

AppleAndroid