By S. Sethuraman
As fiscal 2015 nears the mid-year, hope revives stronger for at least 5.5 per cent growth, despite a wayward monsoon, and should it materialize, the Modi Government could well trumpet that it had overcome the UPA baggage of “economic mess” and below 5 per cent growth over the last two years.
But even growth in the 5-6 per cent range, based on emerging signs of revival in industrial and construction activities, may face risks from the sub-normal monsoon and the geopolitical situation in the Middle East. Also, a considerable degree of micro-management of recovery process would be required with a sense of urgency, such as lowering high food inflation through supply-side management.
RBI’s assessment and prospects for the economy in 2014-15, in its annual report, centre on greater political stability at present, the Modi Government’s commitment to fiscal consolidation, st