AMN
Chief Economic Advisor Arvind Subramanian, has said the price deflation is the real challenge looming ahead. He however said the overall economic growth was in the right direction and fixed capital formation has shown signs of improvement.
Talking to media persons in New Delhi, Mr Subramanian said underlying buoyancy is seen in indirect tax revenue collections. On the growth forecast Mr Subramanian said GDP numbers should be treated with particular care if they are reassessed the growth rate will be closer to 8 percent.
Mr Subramanian cautioned that the pace of growth at present is below what is needed by the economy.
The first quarter GDP data released by the government has revealed that the economic growth, measured by Gross value added, GVA slowed to 7.1 per cent as against 7.4 per cent in the corresponding period last fiscal. The GDP, though expanded at 7 per cent, up from 6.7 per cent. As regards to inflation, the wholesale price index has been in the negative zone in July about – 4.05 percent, while the retail inflation too has fallen sharply 3.78 percent.