New Delhi, Jan 20: Surging inflation and slowing growth are raising serious concerns about the future growth prospects of the economy and as a remedial measure the government should resolve supply-side hurdles and ensure more stringent governance norms, a report said on Monday.
According to the Dun and Bradstreet Economy forecast, even though the Index of Industrial Production (IIP) turned positive in November 2019, it is likely to remain subdued.
"Slowdown in consumption and investment along with high inflationary pressures, geopolitical issues and uncertainty over the recovery of the economic growth are likely to keep IIP subdued," the report noted.
Dun and Bradstreet expect IIP to remain around 1.5-2.0 percent during December 2019.
As per government data, industrial output grew 1.8 percent in November, turning positive after three months of contraction, on account of growth in the manufacturing sector.
On the price front, uneven rainfall along with floods in many states and geopolitical issues have led to a surge in headline inflation even as demand remains muted.
The Consumer Price Index (CPI) in December rose to about five-and-half year high of 7.35 percent from 5.54 percent in November, mainly driven by high vegetable prices.
"The sharp rise in inflation has constrained monetary policy stimulus while revenue shortfall has placed limits on the government expenditure," Dun & Bradstreet India Chief Economist Arun Singh said.
According to Singh, growth-supporting measures and deceleration in growth are likely to cause slippage in fiscal deficit target by a wider margin.
"The government should focus on taking small steps to address the slowdown; in particular, resolve the supply-side hurdles and ensure more stringent governance norms," Singh said.
Unless these concerns are addressed through a comprehensive policy framework, it will not be easy for India to clock a sustainable growth rate to become a USD 5 trillion economy, he added.
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Many of the blasts in the past has been done by the same RSS evil army who then blame the innocents. This is their evil agenda that was hidden from the people. Evils cant escape now. All will be caught red handed. Even if some police try to hide the truth. The CREATOR will show their evil agenda when oppression become excessive.
Let amit shah modi jaitley all bjp bhakts decide are these Desh Bhakts or Desh Drohis. Who ever doing blood shed criminal activity terror activity to be considered and declared as terrorist. And rss is a 100% terrorist group they are against non violence thet murdered father of the Nation.
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