Arvind Subramaniam, Chief Economic Advisor said, “Overall economic growth is moving in the right direction, although its pace is still below what the economy need…but at a pace that expected to pick up in response to the ongoing reforms and one real challenge that looms a head appears not to be the real price deflation.

On Monday, the government released the first quarter GDP data and declared that the economic growth which is measured by GVA slowly comes to 71 percent in the corresponding fiscal. The GDP is increased by 7 percent from 6.7 percent.

Since November 2014, due to inflation, the wholesale price has been in the negative zone and along with the retail inflation (CPI) too has fallen. In 1976, the wholesale inflation was low. Subramaniam questioned the issue related to the need of cutting down the rates by RBI.

From January onwards the RBI governor Raghuram Rajan had cut rates by 0.75 percent in three tranches and maintained status in August despite pressure from the industry and the government.