Economy recovering with mixed signals: Arvind Subramanian

Chief Economic Advisor (CEA) Arvind Subramanian on Tuesday stated that the Indian economy is recovering, but with mixed signals.

"This number has been affected by two factors - one, Diwali fell in the month of November, and also some impact of the Chennai flood. Broadly, data are consistent with what we said in the mid-year analysis i.e economy is recovering, but sending mixed signals," Subramanian told the media here.

"On the other hand, the December tax-revenue numbers were also quite robust. Revenue growth is about 10.6 percent. Inflation number was affected by pulses. Pulses prices increased by some 45 percent, that obviously had an impact," he added.

Subramanian added that oil prices have gone down even further, thus there is cushioning of inflationary pressures.

"I think target for the year is probably going to be met, so nothing to be unduly worried about," he added.