India to experience 6% growth this year

India’s economy is on track to grow close to six per cent by the end of the fiscal year, according to its department of economic affairs.

Indian economic affairs secretary Arvind Mayaram said that as things currently stand, India is expected to have expanded by a robust 5.8 per cent at the end of March 2015.

Speaking to officials, the expert explained that the subcontinent’s economy has experienced a much welcome boost thanks to an “uptick in core sectors”. It is positive news, given that previous to this, India had experienced one of its worst slowdowns in years.

However, data suggests that recovery is picking up in a marked manner. For example, industrial production is on a tremendous year long run, infrastructure output is reported to be at a nine-month high and manufacturing is showing a lot of promise.

Mr Mayaram said, “If you look at the trend growth, then you see green shoots of recovery in the economy.”

The Wall Street Journal reported that the finance secretary has indicated that the Indian government intends to contain this year’s fiscal deficit at the budgeted level of 4.1 per cent of GDP.

“The government’s deficit has been a major reason for worry as it has reduced credit availability for private companies, fuelled inflation and weighed against a central bank cut in interest rates,” the online news provider noted.

India is keen on narrowing this deficit over the next few years and has set itself an ambitious target. By 2017, it aims to narrow it to three per cent of GDP, a level that will go a long way to promoting economic growth.

In related news, it was reported that US-based economist Arvind Subramanian is expected to be named as chief economic adviser to the Indian government.

If this is correct, it will mark another coup for prime minister Narendra Modi, as they already have a world-renowned financial expert in former International Monetary Fund chief economist Raghuram Rajan, who now heads up the Reserve Bank of India.