Eco Survey: Indian economy in repair mode, KPMG says

The downside risk being poor monsoons and oil prices, KPMG points out

July 10, 2014 9:38 IST | India Infoline News Service
Tabled on the eve of the much awaited Budget 2014-15, the economic survey expectedly depicts slowing macro economic fundamentals in the form of a sub 5% GDP and high inflation, the good news being improvement in the balance of payment and management of fiscal deficit targets for 2013-14, Girish Vanvari, Co Head of Tax, KPMG in India, said.

The survey further predicts recovery in GDP to 5.4%-5.9% in 2014-15 and lower inflation towards the end of the year indicating a possible era of a lower interest regime.
Fiscal consolidation through (improved tax GDP ratio and better expenditure management), improvement in business confidence, stable tax regime, roadmap for DTC, GST etc are highlighted as key priorities. The downside risk being poor monsoons and oil prices, Vanvari added.

Clearly there is a hope of recovery, though gradual, in the short to medium term. The Indian economy is clearly in the repair mode. It would be interesting see how budget 2014-15 now balances the fiscal consolidation process whilst attempting to repair or being bold to grow the Indian economy, he further said.

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