28 April 2004 07:51
HIGH FISCAL DEFICIT HAMPERING GROWTH, SAYS GOLDMAN SACHS (high fiscal deficit reducing investment in infrastructure and
hampering India`s economic growth)
Goldman Sachs has observed that high fiscal deficit is reducing investment in infrastructure and hampering
India's economic growth. The agency has published a report titled, 'India: Realising BRIC's (Brazil,
Russia, India, and China) Potential'. It has stated in the report that India's fiscal deficit of 10 percent of
gross domestic product (GDP) is diverting funds needed for infrastructure, health and education to payment of
interest.
It puts India 10-15 years behind China in reform process.
It reckons that the country's economic growth should average 8.1 percent over the succeeding five years to match
the quality of infrastructure and education in China.
[India Business Insight] |
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