"Overall, economic growth is moving in the right direction, although its pace is still below what the economy needs... but at a pace that is expected to pick up in response to the ongoing reforms."
"And one real challenge that looms ahead appears not to be the price inflation but the possible price deflation," Chief Economic Advisor Arvind Subramanian said.
Talking to the reporters on below-than-expected first quarter growth, he said, the numbers suggest that 'economy is recovering' and is consistent with the other more high-frequency indicators such as revenue collection and real credit growth.
On growth forecast, he said, “the Economic Survey said 8-8.5 percent. Certainly if GDP numbers are reaccessed, we are closer to 8 percent than currently being forecast."

The first quarter GDP data released by the government yesterday revealed that the economic growth, measured by GVA slowed to 7.1 percent as against 7.4 percent in the corresponding period last fiscal. The GDP, though expanded at 7 percent, up from 6.7 percent.
As regards to inflation, the wholesale price index has been in the negative zone since November 2014, while the retail inflation (CPI) too has fallen sharply.


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