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India needs to reduce public debt over next 4-5 years: Garg
Dec-17-2018

Economic Affairs Secretary Subhash Chandra Garg stated that the Indian economy has a large overhang of public debt which needs to be reduced in four-five years, even as the Indian economy is moving towards an ideal fiscal deficit level of around three per cent of Gross Domestic Product (GDP) and India’s macroeconomic parameters are among the best globally.

Garg further said ‘Most credit rating agencies give a lot of weightage to the debt to GDP ratio of country, we focused more on the fiscal deficit presently. But going forward, that is the area where we will focus’. On inflation, he noted ‘I think we have more or less conquered, I wouldn’t say things may not go wrong, can go wrong sometimes, there are certain external factors like oil… which are not completely in our control. But I think we are reasonably assured that the inflation is less of a worry.’ Headline inflation fell to a 17-month low of 2.33 per cent in November 2018, primarily due to a favourable base effect and fall in prices of vegetables and cereals.

Besides, he stated that India can become a $10 trillion economy by 2030 if some of the concerns are addressed. He said ‘We can build a new economy whether you talk about 2025, 2030, a $10 trillion economy by 2030 or $5 trillion by 2025, all these are feasible, we can achieve it if we pay attention to all these major traits’.

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