Indian economy in right direction: Arvind Subramanian

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New Delhi: The Indian economy is clearly recovering — not slowing down — and is on course to record close to 8 per cent growth this fiscal, Arvind Subramanian, Chief Economic Advisor in the Finance Ministry, has said. Overall, economic growth is moving in the right direction, although its pace is still below what the economy needs, Subramanian told reporters at North Block here.

One real challenge that looms ahead appears not to be price inflation, possible price deflation, he warned. Subramanian said that the Indian economy is still not growing anywhere close to full potential. He felt that it would not be right to look at GDP growth sequentially and come to any conclusion that GDP growth had slowed from 7.5 per cent in the fourth quarter of 2014-15 fiscal to 7 per cent in the first quarter this fiscal. The CEA expects the consumer price inflation to hover between 5-5.5 per cent by the end of this fiscal.