GDP to expand more than 5.5%, says Sitharaman

But doesn't give any specific projection, says govt working on growth rates that would be sustainable

The country’s GDP (gross domestic product) growth in the current fiscal will top 5.5 per cent as predicted by the Reserve Bank of India (RBI).

The Central Bank in its annual report for 2013-14 had projected the GDP growth for 2014-15 at 5.5 percent.

“This may be good news but the government is more focused on looking at every possible thing we need to do and work at such a pace so that growth can be high and sustainable for benefitting all. Absolutely the growth will be more than 5.5 per cent,” Union Minister for State, Finance, Nirmala Sitharaman told media persons on the side-lines of National Symposium on Manufacturing and Best Practices to Improve the Business Environment organised here.

She, however, declined to give any specific projection. “We are working towards such growth rates which would be sustainable,” she said.

With greater political stability, commitment to fiscal consolidation, strengthening of the monetary policy framework and better policy implementation, GDP growth is expected to be around 5.5 per cent in 2014-15 from the sub-5 per cent in the preceding two year, RBI had stated in its report.

Stating that government’s commitment is to work in such a way as to attain sustainable high growth rate, Sitharaman said, unless growth is at a level, which is well over the prevailing rates, the benefits of economy cannot reach all sections of people to realise the prime minister’s dream of Sabka Saath Sabka Vikas (with all and development of all).

The forecast of the RBI just revalidated the prediction earlier this year and was in line with most economists, but below the prediction of the government, which is expecting the economy to expand by more than 5.5 per cent during this financial year.