Change track to revive growth: Ind-Ra cautions govt

Says generating jobs an uphill task even if growth recovers

India Ratings (Ind-Ra) on Tuesday cautioned the government that its strategy to revive economic growth by focusing on infrastructure may not yield results unless real estate and manufacturing sectors recover.

Revising down economic growth by one percentage point to 6.8 per cent from earlier 7.8 per cent for the current financial year due to demonetisation, the rating agency pegged economic expansion in the next financial year to 7.4 per cent. Ind-Ra, however, said it is an uphill task to create jobs even if growth revives.

Sunil Kumar Sinha, principal economist with Ind-Ra, told reporters that capital expenditure by