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

Ukraine Purges Interior Ministry Leadership With Pro-Russian Ties

Interior Minister Avakov says 91 people 'in positions of leadership' have been fired, including 8 generals found to have links to past pro-Moscow governments More

US Airlines Point to Additional Problems of any Ebola Travel Ban

Airline officials note that even under travel ban, they may not be able to determine where passenger set out from, as there are no direct flights from Liberia, Guinea or Sierra Leone More

Nigerian President to Seek Another Term

Goodluck Jonathan has faced intense criticism for failing to stop Boko Haram militants 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.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid