8% growth in reach: CII

MID-YEAR REVIEW OF THE ECONOMY

The Confederation of Indian Industry (CII) today welcomed the bright outlook projected for the economy in the mid-year review and said 8 per cent growth was reachable but the country would have to get used to a higher 6-7 per cent inflation.

"Eight per cent growth is doable, feasible. We just need to remove some of the bottlenecks. We need to get some more reforms into position, mainly on the infrastructure side and in terms of getting the speed of transformation taking place in our procedures and systems so that we can achieve the 8 per cent growth rate which we need badly in this country," N Srinivasan, director-general, CII, told the media.

"I would say we may have to live with 6-7 per cent inflation. Growth with inflation is something which a developing economy has to experience," he added.

He said if the industry and services sectors continued to perform well and there was a recovery in agriculture, then the economy would grow handsomely.

The mid-year review, presented by the finance minister today, was a realistic appraisal where the economy stood, Srinivasan said.

"It indicates that the economy overall is in good shape and that we could expect a decent GDP growth. It also highlights issues like the fiscal deficit and the importance of addressing the issue of subsidy."