Industry body Assocham has said that taming the surging inflation holds the key to getting back on the high growth trajectory while improving country’s macroeconomic data. The country's economic growth slowed down drastically to a decade low of 5 percent last fiscal year after recording an average of nearly 8 percent over the last nine fiscals. Meanwhile, the WPI inflation accelerated to 7-month high of 6.46% in the month of September on y-o-y basis as against 6.10% in August and 8.07% during the corresponding month of the previous year. Praising the government's recent efforts to boost country’s infrastructure sector, Assocham Secretary General D S Rawat said the government would make all efforts to get pass the key financial reforms bills like Insurance and SEBI. The government seeks to raise the FDI cap in insurance sector to 49 percent from 26 percent.
Meanwhile, the government expects that economy will grow between 5 to 5.5 percent in the current fiscal on the back of strong agriculture output on the back of better than expected monsoon in current year. Indian macroeconomic data has also started improving with core industrial sector growing at a year high of 8% in September against 3.7% growth in the previous month. Further, the government has also asserted that country’s deficits will be contained in the target limits. The government has set target to contain the CAD at 3.7 percent and fiscal deficit at 4.8 percent of GDP in the current financial year. India's CAD widened to $21.8 billion or 4.9 percent of GDP in the April-June quarter of FY14, while, the country’s fiscal deficit number has touched around 76 percent of the budget estimate in the first half of current fiscal.
