UPA economists in state of denial

The Chairman of the Prime Minister Economic Advisory Committee (PMEAC) Dr C Rangarajan, was quoted on 24th April as saying that the current (XII) Five Year Plan could still see an average GDP growth of 8 per cent! During the interview, given after the release of the latest Economic Review by the PMEAC, Dr Rangarajan expounded on a lowering of the incremental capital/output ratio (ICOR) resulting in higher growth in coming years. In simple terms, he expects higher growth by a de-bottlenecking of large projects that will bring down the ICOR.

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