Enthused by the improvements expected in macro-economic situation, Planning Commission Deputy Chairman, Montek Singh Ahluwalia, today said that India can achieve 6 per cent economic growth next fiscal and that the second half of this fiscal could be better than the first.
“I would hope that if my judgment, that the second half of the current (fiscal) year shows more than 5 per cent, then it is not unreasonable to expect more than 6 per cent in the next financial year,” he said.
Ahluwalia’s comments came ahead of the release of second quarter (July-September) Gross Domestic Product (GDP) data by the Government. India’s GDP grew at a decade low of 5 per cent last fiscal.
There seems to be persistent sluggishness in the economy so far as GDP growth slowed down to 4.4 per cent in April-June quarter from 4.8 per cent in January-March quarter. The economy grew 5.4 per cent in the corresponding quarter (April-June) last fiscal.
Ahluwalia said that he expected all political uncertainty, that is inevitably associated with the general election, will be over (by next year) and this would give enough legislative time for many held-up moves.
“I am hoping that if early next year, after the general election, the GST is put through even if it is implemented several months later, the positive impact on expectations will be very high. So, going for 6 plus in fiscal year 2014-15 is a perfectly reasonable thing to do and then go to 7 per cent plus and then to 8 per cent is not unreasonable,” he added.
Ahluwalia’s assumption of improving macro-economic scenario is based on the impact of good monsoon and expected improvement in current account deficit and fiscal deficit.