Economy to grow at 6.4 percent in 2013-14: PM panel

May 24, 2013 by

Source: Indo-Asian News Service via Indian Economic Business News

The Indian economy is expected to grow at 6.4 percent in the current fiscal against the estimated 5 percent expansion registered in the previous year, the Prime Minister’s Economic Advisory Panel said. “The economy has bottomed out and we will achieve higher growth of 6.4 percent in the current financial year,” Prime Minister’s Economic Advisory Council chairman C. Rangarajan said recently. He said agriculture sector growth is likely to increase to 3.5 percent 2013-14 as compared to the estimated 1.8 percent growth in the fiscal ended March 31, 2013. The growth of manufacturing sector is likely to increase to 4 percent in the current financial year as compared to 3.1 percent in the previous year. The services sector is estimated to expand by 7.7 percent in 2013-14 as compared to 6.6 percent growth projected for the previous fiscal. Mr. Rangarajan said growth would accelerate further if the government expedites clearance for major projects. “If we take action for speedy implementation of projects we can achieve the higher rate of growth quickly even in the short-term,” he said. According to the panel’s estimate, the country’s main inflation is expected to be at around 6 percent in the current financial year as compared to the estimated 5.96 percent at the end of the financial year 2012-13. Mr. Rangarajan said moderation in inflation would give scope for monetary policy easing by the central bank. The central bank has been maintaining tight monetary policy for the last three years to contain inflation.

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