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Home > Uncategorized > Delays in project completion hampering growth: Rangarajan

Delays in project completion hampering growth: Rangarajan

afternoonvoice@gmail.com' by Afternoon Voice
January 10, 2014
in Uncategorized
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RangarajanConcerned 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.

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