Fiscal & Monetary Policy – Combination for Better Growth
The Economic Survey predicts sustainable growth of 7 – 7.5% scaling over to 8% growth in coming years, and further consolidation of fiscal deficit to 3.5%, there is a need for the combination of Fiscal & Monetary Policy for better growth, said Shri Vijay Kalantri, President – All India Association of Industries (AIAI).
AIAI further feels in view of inflation below 5%, wholesale Price Index being negative, there is enough room for the relaxation of Monetary Policy and reduction in interest rate to give impetus to growth.
AIAI further feels there is a need for increase in public investment in view of private investment being slow due to stressed and global slow down.
The Economic Survey clearly gives confidence to the foreign investments in view of Government’s Fiscal Consolidation.