Stagflation knocking at our doors: Mitra

West Bengal Finance minister Amit Mitra on Saturday said that India is facing the prospects of a possible stagflation due to low growth and high inflation.

"Stagflation is knocking at our doors. This is due to stagnation following low growth and high inflation", Mitra said at an event organised by West Bengal Garment Manufacturers and Dealers Association here.

He said that as per new data, India's GDP growth rate is likely to be 4.6 per cent for the current financial year.

Fitch Ratings on Friday has cut its growth forecast from previous estimation of 5.6 per cent to 4.6 per cent for the financial year 2019-20.

Mitra said that when India's growth rate is nosediving, West Bengal's growth rate is on an upward trend, coupled with low levels of poverty and rising employment rates.

Talking about the textiles industry in the state, he said that the sector should target an annual revenue of Rs one lakh crore by 2023.

He said that the sector provides direct employment to 20 lakh people and indirect employment to 50 lakh.

Mitra said that the state is in process of setting up seven textile parks in and around the city, the largest one being at Nungi on the western fringes of the metropolis where the government would invest Rs 400 crore for building 11 lakh square feet of space.

According to him, bank loans to the MSME sector of the state is likely to cross Rs 70,000 crore during the current fiscal.