The
economic growth rate is likely to be 8.7 per cent in the review
year 2007-08 as per the Economic Survey report presented in
the Parliament. Finance Minister, P Chidambaram expressed
concern over continuous rise in inflation. The expected growth
rate of 8.7 per cent is as per the trend of the economy, it
is informed. The Survey recommends reforms for strengthening
of the rupee and to check fall in industrial demand to achieve
growth rate of 10 per cent. Finance Minister said that central
government and Planning Commission both would have to come
forward for the reforms in policies and institutional reforms
so that in the coming decades foundation for higher economic
growth could be laid. Concern was expressed on economic slowdown
in America, effect of strong position of rupee, slow industrial
production due to decreasing demand of consumer items and
lack of basic facilities of commodity and social sector. There
is need to meet challenges both at the central and the state-level.
These policies of central government should be managed well
and the inflation should be checked with a view to strong
economic system. The states should also reform their system
in government and semi-government services. Real rate of interest
should be according to inflation and in this connection loan
and share market should be made liberal. We are behind in
agriculture sector. Efforts are on for reforms in this direction.
The survey calls for removal of hurdles coming in the path
of modernisation and advancement of agriculture. According
to the review, investments and savings and debt and loans
are decided through real rate of interest. With a view to
control inflation, agriculture needs to be modernised. The
survey says the government is committed to make the economy
strong, to increase pace of development and economic growth
rate. Efforts on checking inflation are being made and proper
measures would be adopted in this connection.
|
Print This Page
Terms
and Conditions