New Delhi, Apr 17 (UNI) Surging inflation rate, rupee appreciation, lack of infrastructure, plummeting global food stocks and bureaucracy are the factors affecting the country's growth rate, experts said here today.
Speaking on a panel discussion on ''Will current global slowdown, financial markets turmoil, high oil prices and appreciating rupee impact India's growth rate?'', organised by Amcham, Citigroup CEO Sanjay Nayyar opined that just like RBI bonds and oil bonds, there should be infrastructure bonds to channelise savings in the infrastructure, thereby sustaining the India growth story.
Expressing concern over inflation and rupee appreciation, which are hitting the small and medium enterprises (SMEs), Mr Nayar said, ''Just like China, we should have infrastructure bonds to keep up investment in infrastructure. Moreover, there should be banking reforms for deep penetration in the rural areas.'' Besides, the government should allow external commercial borrowing (ECBs) and foreign invesments in infrastructure and real estate if it wants to sustain the growth rate of eight per cent, he said, recommending that the government adopt more pragmatic approach while designing policies and reforms.
Reiterating it, CERG Advisory Pvt Ltd Chairman Omkar Goswami said, ''Zero governance, lack of infrastructure and the mass poverty are leading to the downfall of GDP. The domestic issues need to be addressed besides taking into account the US slowdown.'' On high food prices and record fall in the global food stocks, Dr Goswami said the rise in Wholesale Price Index (WPI) is a matter of concern.
Expressing a similar view, Standard and Poor's Asia Pacific Chief Economist Subir Gokarn said food problem needs to be tackled, adding that policies envisaged by the government should be implemented soon.
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