Mumbai: The RBI has suggested privatisation of some public sector enterprises that are not yielding due returns, improvements in corporate governance and a greater management focus on improving firm values to increase government realisation from disinvestment.
The RBI which released its annual report on Thursday said low returns on government investments in public sector undertakings, insufficient returns on the use of natural resources and inadequate disinvestment receipts also contribute to low revenue mobilisation. It said these should be addressed to put India’s public finances on a firmer footing.
On the growth prospects for 2014-15 the report said the economy could grow in the range of 5 to 6 per cent in 2014-15. Signs of improvement in mining and manufacturing activity, expected pickup in investment, improved availability of financial resources to private sector with lower draft of government on financial savings of the households amid fiscal consolidation, improved external demand and stabilising global commodity prices are expected to support recovery.
Overall, the economy may grow faster than in the previous year, with acceleration in mining, manufacturing, construction and trade, hotels, transport and communication sectors. These four segments account for 50 per cent of GDP compared with about 15 per cent in case of agriculture, forestry and fishing.
