PM Modi's economic advisory council accepts slowdown; charts out roadmap for growth

PM Modi's economic advisory council accepts slowdown; charts out roadmap for growth

PM Modi's economic advisory council accepts slowdown; charts out roadmap for growth

Setting the priorities straight, the newly-constituted Council, on Wednesday identified 10 major priority areas including accelerating economic growth and employment over the next six months.

Meanwhile, council's chairman and Niti Aayog member Bibek Debroy, on his part, refused to divulge "certain issues" which have been referred to it by the Prime Minister but added that there was consensus among members on aspects which have hampered growth. Sources said although the EAC-PM is unlikely to formulate any immediate advice to the Prime Minister after its first meeting, it will identify a handful of broad groups skills, trade and commerce, digital economy and innovation ecosystem, infrastructure, and agriculture, among others for effective policy intervention advice.

The council in its meeting identified 10 key themes around which it will structure its report in the coming months.

The key issues include informal sector and integration, economic growth, institutions of economic governance, patterns of consumption, and production and the social sector.

It was also agreed that specific issues papers would be brought out by members to address key concerns, and linkages will be established with key national Institutions.

On joblessness front, Debroy, however, said whether we like it or not we don't have good data on employment.

US Navy destroyer sails near disputed islands in South China Sea
A U.S. official said the destroyer USS Chafee sailed near the Paracel Islands on Tuesday, coming within 16 nautical miles of land. The Paracel Islands have been controlled by China since 1974 but they are also claimed by Vietnam and Taiwan.

The PMEAC, which is headed by NITI Aayog member Bibek Debroy, said that the government should stick to the fiscal consolidation roadmap.

To a query on job losses in the wake of demonetisation and implementation of the Goods and Services Tax (GST), Debroy said, "This issue was not examined in today's meeting".

On IMF lowering India's growth projections, EAC-PM member Rathin Roy said his experience from the past was on 80 per cent of the occasions, IMF projections were incorrect.

The IMF on Tuesday lowered India's growth forecast for the current fiscal by 0.5 percentage points to 6.7 per cent, while the World Bank on Wednesday pegged India's economic expansion at 7 per cent, down from 7.2 per cent projected earlier.

The majority view in the government is not inclined towards relaxing its fiscal deficit target of 3.2% of gross domestic product for the current financial year.

The government is considering ways to revive the economy after growth fell to its slowest pace in three years in the three months to June. The country's GDP growth has been dipping consistently for several quarters.

Related news