Millennium Post

‘Growth, inflation, fiscal deficit, CAD key challenges for new govt’

The new government will face four big challenges — subdued growth, the fiscal and current account deficits and sticky inflation, RBI Governor Raghuram Rajan said on Thursday.

‘Growth, fiscal deficit, current account deficit and inflation — these are the four biggest macro-economic challenges and we have to work on all of them. They are all inter-related,’ he said when asked about the main tasks for the new government. The results of elections to the 16th Lok Sabha will be announced on Friday and the new government is likely to be in place by the month end. Several exit polls have predicted victory for the BJP-led National Democratic Alliance. India’s economy expanded 4.9 per cent in 2013-14 after slipping to a decade-low growth of 4.5 per cent in 2012-13.  Growth in this financial year is estimated at 5 per cent.
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