In its recent economic outlook of India’s economy the World Bank has expressed its satisfaction and projected high economic growth in the near future.
No doubt it has been a matter of satisfaction, particularly, to the ruling government. A few days ago Subhas Chandra Garg, IAS, Secretary, Department of Economic Affairs, Government of India, mentioned that at present, a lot of industries are having excess capacity. Output gaps are closing in steel & cement, making investment more profitable. The NPA problem of the banks is also a thing of the past. Therefore unless excess capacity is not lowered new investment is hard to come. But according to him there are some industries where capacity utilization is as high as 80-85%.
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