Page 21


repeated efforts to revive the growth sentiment in this sector. This is largely because bottlenecks continue to hurt fresh investment in this key sector. PM underlined the challenges in detail in his address to the full council of ministers:  Remove constraints like fuel supply agreements, security and environmental clearances which deter or slow down investment,  Growing gap between demand and supply of energy must be addressed,  Economic Growth is declining, exports are not growing,  Need to cushion the domestic economy from developments in the international economy,  Fiscal deficit is too high. It is a deterrent for domestic and foreign investment,  Create a conducive environment to realize an investment of 1 trillion dollars in infrastructure sectors (12th Plan Period) But there are challenges on other

Decline in economic growth rate poses new challenges for the government. To cope with this challenge, serious efforts are on to follow a fiscal consolidation plan with specific targets in next five years. front too. The Kelkar Committee appointed by Finance Minister too has categorically asserted the need to take radical measures to address the challenges economy was facing. The major suggestions of Kelkar Committee are:  Take corrective steps otherwise the fiscal deficit may rise to 6.1% of GDP,  Transition to Goods and Services

Falling Growth Forecast (2012-13) in % Budget PM’s EAC Fin Ministry RBI Crisil Citi

: : : : : :

7.35-7.85 6 5.5-6 5.8 5.5 5.4


Lt nov 2012 for net  
Lt nov 2012 for net