The former Finance Minister of India Shri P. Chidambaram speculated with confident words that India can achieve 8% growth rate in the next few years by reducing the fiscal deficit.
Further, if the new government will continue to move on reducing the fiscal deficit, promoting savings and investments by introducing various incentive schemes and mobilize the savings of the people. Being more diligent in the implementation of the decisions, policies and projects at the right point of time will take us to 8% GDP growth as our economy previously was growing at over 9% but went in vain because of the global financial crisis of 2008.
8% growth would help create a plethora of employment opportunities for the emerging youth of the nation.
Financial sector reforms are also very much needed and essential for the achievement of the said growth.And anything more than 8% growth would lead to the inflationary crisis and hence borrowing cost would increase by the virtue of which again the fiscal deficit and current account would increase.
Hence, thereby we will have to adopt a very diligent approach to reach the target of 8% mark.
