INSUBCONTINENT EXCLUSIVE:
current focus on fiscal deficit for the next few years, as there is a "huge overhang of public debt", Economic Affairs Secretary Subhash
Chandra Garg said on Saturday
Speaking at the Annual General Meeting of the Federation of Indian Chambers of Commerce and Industry (FICCI) here, he noted that credit
rating agencies give significant weightage to the debt-to-GDP ratio of a country.By comparing what a country owes with what it produces, the
debt-to-GDP ratio indicates its ability to pay back its debts
Currently, India's debt-to-GDP ratio is around 70 per cent."We still have overhang of a very large debt, of public debt especially
Maybe in next four to five years, that is the area we will focus
deficit currently, but going forward that (public debt) is the area that we will focus," the Secretary said.Fiscal deficit of the country,
he said is close to 3 per cent, a level considered to be reasonably ideal.On inflation rate, he observed that India has "more or less
conquered" rise in prices."Things can go wrong because of external factors, like oil which we don't have in our control
But I think we are reasonably assured that inflation is less of a worry going forward."Talking about the country's economic situation, Garg
said the number of people engaged in the agriculture sector should come down to around 10 per cent for the country to prosper."We have so
much or so many people still trapped in agriculture
Any economy where 55 or 65 per cent of the people are dependent on agriculture is not going to be large, rich and prosperous
Globally now, agriculture mostly employs only about 5 or 6 per cent of the people."I don't think more than 10 per cent of India's population
should remain employed in agriculture," he said.The government will have to plan and ensure that farmers and agriculture labourers shift to
the services and manufacturing sectors, along with the new digital economy.Speaking to reporters on the sidelines, Garg, who is also an RBI
Board member, said that the Reserve Bank's Board meeting held on Friday discussed on the apex bank's governance structure, liquidity and
credit issues, among others.The Secretary further said that the meeting did not discuss the issue of RBI's economic capital framework and
