Economic Survey pegging GDP growth at 5.4-5.9% is a practical number, possible if the slew of announced initiatives is implemented

The Economic Survey accurately captures the logjam by stating “What is particularly worrisome is the slowdown in manufacturing growth that averaged 0.2 per cent per annum in 2012-13 and 2013-14.” and an overall cost overrun of INR 1,57,802 crore (21.3 per cent of the original cost) of 239 projects due to regulatory approvals, problems in land acquisition and rehabilitation, and environmental clearances . However to achieve a growth between 5.4%-5.9% in 2014-15, the Government needs to bring sharp short term fiscal relief and focus on the finance availability and impl...
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Exempt power producers from payment of MAT

The current Government has to enact a fine balancing act in order to manage the Revenue gap, deal with Subsidies valued around Rs. 2,46,000 crore, restarting the GDP growth and more importantly providing uninterrupted 24X7 power supply to the country.   The fiscal deficit of about Rs 2,408.37 billion ($40.05 billion), or 45.6% of the full-year target, almost 5% GDP along with subsidies are the critical aspects that hinder the private investment, which are very essential for the revival of the economy. Hence the Government needs to address these in the upcoming bu...
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