India's growth estimates for 2014

Source: Financial Express PMEAC - Prime Minister Economic Advisory Council NCAER - National Council of Applied Economic Research ADB - Asian Development Bank IMF - International Monetary Fund

 

Through the dawn of the global crisis, India had been able to dazzle the world with its stellar economic growth. But things have changed. High inflation rates, RBI's hawkish policy and lack of policy reforms led growth to dip. The fiscal year 2013 saw growth come in at less than 6%. Though the outlook for 2014 is better; however, it is not much better. As shown in the chart the various forecasts for India's growth range from 5.8% to 6.7%. Not one thinks that India can grow at over 8% like it had done in the past. Things have definitely improved when compared to where we were last year. Inflation has eased off. This has made RBI adopt a more liberal stand and roll back interest rates. The government seems to be working on reform s albeit in a small manner. But a lot more needs to be done. Most importantly the government needs to work towards restoring investor confidence in the country. Only that will help boost investments which are needed to spur growth.