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  • Reform measures can ‘easily enhance growth rates by at least 1%: EAC

    Published on January 25, 2019

    The Economic Advisory Council to the Prime Minister EAC-PM today met in New Delhi and took stock of the state of the economy.

    According to an official release, the Council endorsed that the macro-economic fundamentals of the economy are sound, but challenges remain, several of which are structural in nature.

    It noted that while the prospects for world economic growth does not look very promising, particularly in the advanced economics, there is sufficient amount of growth momentum in emerging market economies.

    It said, India is not insulated from global developments but India’s growth is expected to be in the range of 7 to 7.5 per cent in the next few years. It said, however, with reforms designed to address the structural problems, growth rates can easily be enhanced by at least one per cent.

    Amongst the issues which were discussed include agricultural problem, investment trends, fiscal consolidation, interest rate management and credit and financial market issues.

    The Council felt that the exchange rate management of the rupee by the RBI has been sound despite the volatility in the price of crude oil. It said that the good news is that oil intensity is showing a declining trend.

    The release said, the EAC-PM strongly feels that there should be no deviation from the fiscal consolidation target and but there must be continued emphasis on social sector intervention.