RTTNews - The Planning Commission Deputy chairman Montek Singh Ahluwalia, said that India's economic growth will pick up by the third quarter of the year, reports media. He said that the worst is behind us and the country is now marching towards normal growth. He disagreed with the IMF's projection for 5.25% growth this fiscal.
While commenting on CPI numbers Ahluwalia said though the numbers are high, they are based on prices that are old by some months. He also said a higher fiscal deficit is not a concern provided the government spending fills the gap in private investment. He also said that India needs more stimulus measures even if it means widening the fiscal gap.
High borrowing costs and the global slowdown hit India's economy more than expected, forcing the government to step up market borrowings to support stimulus spending. This impacted the interest rates even after the RBI cut lending rates by 425 basis points between October 2008 and April 2009.
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