After India’s Gross Domestic Product (GDP) grew at 6.3 percent in the September quarter compared to 5.7 per cent in the June quarter, reflecting an improvement in the Indian economy, Niti Aayog Vice-Chairman Rajiv Kumar has said that the growth rebound shows that the economy has come out of the woods and economic expansion for the full year will come in at 6.5-7 percent. He said that in the next half of 2017-18, we will grow by more than 7 percent. "The growth in the full year of the current fiscal will come between 6.5 percent and 7 percent. Henceforth, I am sure it will keep accelerating".
Talking on interest rates issue, he expressed his surprise and said why commercial banks are not willing to reduce lending rates, they earn only 6 per cent when they put money with the RBI and the lending rate is 11.5 per cent for even AAA borrowers. He added that the commercial banks deposit rate is that you and me get on savings deposits is 3.5 per cent. I think the commercial banks' transmission mechanism has to improve and they must get their act together and become more efficient.
Earlier, Kumar had said that government must consolidate the various reforms it put in place over the past three years and begin to focus on the health and education sectors over the next 18 months.