• The Prime Minister’s Economic Advisory Council (EAC-PM) said that the agriculture sector should be bolstered through increased credit flows and schemes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme.
  • The Council also added that it strongly felt that the government should not deviate from its fiscal consolidation path.
  • While the prospects for world economic growth does not look very promising, particularly in the advanced economics, there is sufficient amount of growth momentum in emerging market economies.
  • India is not insulated from global developments.
  • Nevertheless, India’s growth is expected to be in the 7-7.5% range in the next few years; one of the fastest in the world.
  • The EAC-PM said that it felt that the challenge of insularity being seen in external trade should be reversed through supportive policy interventions because there is a positive turn in exports that is now visible.
  • The challenges in the agricultural sector should be addressed by looking at credit flows and support to employment programmes such MNREGA.
  • The EAC-PM strongly feels that there should be no deviation from the fiscal consolidation target and but there must be continued emphasis on social sector intervention.
  • Among the challenges that need to be addressed are reforms in the agricultural sector, the MSME sector, skill development, credit issues, digital payments and the banking sector reforms.
  • The government and the RBI should be complimented for sound macroeconomic management, and this trend should be continued with