India likely to return to 8% growth in two years: Mayaram.

In an exclusive interaction with NDTV, Economic Affairs Secretary Dr Arvind Mayaram has said that the Indian economy is on an upturn, and is expected to grow by at least 6 per cent in the current financial year.

"Every indicator, whether it is fiscal deficit or inflation or even current account deficit, every indication is showing that the economy is on the upturn. There is no question about that," he said.

He added that the Indian economy was likely to bounce back to 8 per cent growth trajectory over the next two years.

On being asked whether the government was likely to better its fiscal deficit aim of 4.8 per cent for the current financial year, Mayaram said: "My target for this year is 4.8 per cent. So why should I now not continue with that target and perhaps surprise you next year in April with a better number?"

He also said the government was sticking to its borrowing target for this financial year.

The government plans to borrow a record Rs. 5.79 trillion from the market.

The Economic Affairs Secretary has ruled out any possibility of dipping into forex reserves to fund the current account deficit.

"We will not dip into our reserves. And this will be financed purely through our capital flows," he said.

In order to attract long-term foreign capital into India, the government is seriously working to further liberalise its foreign direct investment regime, which it will announce shortly. The secretary asserted: "We want to deepen the FDI regime to be able to get more flows. We are looking at it very seriously."

Despite a sharp correction in bullion prices, Mayaram says there is still no case of a rollback in the hike in the import duty.

Reiterating the government's stance to wean people away from gold, the Reserve Bank of India will soon announce inflation indexed bonds for retail savers, he said.

"We would still want to incentivize savings into productive instruments rather than gold. So I don't see any reason at this moment for any review of the duty."



Source : profit.ndtv.com