Delays in project completion hampering growth: Rangarajan

Tags: News
Concerned over declining growth rate, Prime Minister's key economic advisor today called for faster implementation of large projects to spur investments.

"Economic growth has in fact declined much more steeply than what is warranted by the decline in investment. This might be because projects have not been completed in time or complementary investments have not been forthcoming," Prime Minister's Economic Advisory Council chairman C Rangarajan said here.

In some cases this could also be due to non-availability of critical inputs such as coal and power, he said, addressing the convocation at the Indian Statistical Institute.

It should not be surprising if the revised growth rate, to be announced later, could be 1 per cent higher than the one indicated earlier, he said, adding that the growth rate has been moderate in both 2012-13 and 2013-14 fiscals.

The results of the Annual Survey of Industries released last week indicated that the growth in industrial sector could be substantially higher than what was indicated earlier, Rangarajan said.

Pointing out that the potential rate of growth of the Indian economy still remained high, he said: "Even today, saving and investment rates are at high levels.

"It reassures us that if we are able to find ways to complete the projects speedily, we shall be able to usher in rapid growth in income even in the short run."

He said actions such as the constitution of the Cabinet Committee on Investments should be able to usher in rapid growth in income even in the short run.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Subdued crude oil prices offer an excellent opportunity for India

    In Mid-June, when most of us probably first heard of the ISIS posing a serious threat to stability in West Asia, international crude oil price suddenl

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

M S Swaminathan

Strengthening family farming in India

The United Nations declared 2014 as the International Year of ...

Kuruvilla Pandikattu SJ

Roots and routes as our foundation

Ethnicity and identity linked to both territory and culture. The ...

Gautam Gupta

Don’t let success kill the essence of the concept

In 1999 when my mother started her own label, we ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture