Manufacturing likely to grow at 4%
Updated: Apr 23, 2013 03:16:43pm
New Delhi, Apr 23 (KNN) India’s GDP growth is expected to be 6.4 per cent in the new financial year that began on April-1 but the country’s manufacturing growth will lag behind expanding only by 4 per cent, according to as assessment done by Prime Minister’s Economic Panel.
“Growth and, more particularly, industrial growth has slowed. But the decline appears to have bottomed out. Overall economic growth is expected to rise to 6.4 per cent in 2013-14 from 5 per cent in the previous year,” said Chairman of the Prime Minister's Economic Advisory Council (PMEAC), C Rangarajan while releasing the economic review for 2012-13 here today.
Economic growth rate had slipped to decade's low of 5 per cent in 2012-13 mainly on account of the impact of the global financial woes.
Rangarajan hoped that the GDP estimate for 2012-13 would be revised upwards from 5 per cent estimated in February by the Central Statistical Organisation (CSO).
Further, improvement in the growth rate in the current fiscal, he said, would mainly be on account of better performance of agriculture, industry and services sectors.
Agriculture is expected to grow at 3.5 per cent, industry at 4.9 per cent and services at 7.7 per cent in the year ending 31 March, Rangarajan told reporters at a press conference.
The government had earlier forecasted that the Indian economy will grow 6.1-6.7 per cent in the current fiscal.
In the last fiscal, industry growth was less than 1 per cent. Despite improvement in industrial growth by 3.9 per cent, it has fallen short of the required pace for enough job creation and overall growth of the country.
He also said FY14 current account deficit (CAD) was expected to narrow down to 4.5 per cent (from 5.1 per cent in FY13) when the pace of exports picked up. He clarified that exports would remain modest in the first quarter but would see gradual momentum from second and third quarters.
Explaining that there were tell-tale signs of WPI inflation coming down, specifically non-food inflation, Rangarajan pegged it at 6 per cent for the fiscal year 2014. (KNN)
“Growth and, more particularly, industrial growth has slowed. But the decline appears to have bottomed out. Overall economic growth is expected to rise to 6.4 per cent in 2013-14 from 5 per cent in the previous year,” said Chairman of the Prime Minister's Economic Advisory Council (PMEAC), C Rangarajan while releasing the economic review for 2012-13 here today.
Economic growth rate had slipped to decade's low of 5 per cent in 2012-13 mainly on account of the impact of the global financial woes.
Rangarajan hoped that the GDP estimate for 2012-13 would be revised upwards from 5 per cent estimated in February by the Central Statistical Organisation (CSO).
Further, improvement in the growth rate in the current fiscal, he said, would mainly be on account of better performance of agriculture, industry and services sectors.
Agriculture is expected to grow at 3.5 per cent, industry at 4.9 per cent and services at 7.7 per cent in the year ending 31 March, Rangarajan told reporters at a press conference.
The government had earlier forecasted that the Indian economy will grow 6.1-6.7 per cent in the current fiscal.
In the last fiscal, industry growth was less than 1 per cent. Despite improvement in industrial growth by 3.9 per cent, it has fallen short of the required pace for enough job creation and overall growth of the country.
He also said FY14 current account deficit (CAD) was expected to narrow down to 4.5 per cent (from 5.1 per cent in FY13) when the pace of exports picked up. He clarified that exports would remain modest in the first quarter but would see gradual momentum from second and third quarters.
Explaining that there were tell-tale signs of WPI inflation coming down, specifically non-food inflation, Rangarajan pegged it at 6 per cent for the fiscal year 2014. (KNN)
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