EAC red flags areas of concern hitting growth
PM's team to submit report on job creation by next month.
New Delhi: With the economic growth hitting a trough and the International Monetary Fund (IMF) also downgrading the growth forecast, economist Rathin Roy, part-time member of the newly-formed Prime Minister’s economic advisory council on Wednesday made light of the IMF’s projections, claiming that 80 per cent of projections by IMF are “wrong”.
The Prime Minister’s economic advisory council which was formed by Prime Minister Narendra Modi last month, held its first meeting during the day and Mr Roy’s comments came during the press conference which took place soon after the meeting.
“IMF’s growth projections are 80 per cent wrong... The World Bank’s growth projections are 65 per cent wrong,” he said when asked to comment on lowering of growth projections by international multilateral lending agencies.
Meanwhile, council’s chairman and Niti Aayog member Bibek Debroy, on his part, refused to divulge “certain issues” which have been referred to it by the Prime Minister but added that there was consensus among members on aspects which have hampered growth.
When asked as to why the council was set up in the fourth year of the NDA Government and at a time when growth is sluggish, economist Surjeet Bhalla — who is also a part-time member of the council along with Mr Roy and Ms Ashima Goyal — said that two years back the economy was stable whereas the mandate of the council is to “accelerate” growth in the context of the present times and hence it was set up now.
The council in its meeting identified 10 key themes around which it will structure its report in the coming months. Among these are job creation, economic growth, agriculture, social sector and fiscal framework.
Mr Debroy said that the council by next month will prepare reports on at least five of these subjects.