ID :
85574
Thu, 10/22/2009 - 08:37
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https://www.oananews.org//node/85574
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India may grow by 6.75 per cent this fiscal: PMEAC
New Delhi, Oct 21 (PTI) Indian economy may grow by 6.75
per cent during the current financial year despite the adverse
impact of monsoon on farm sector output, the Prime Minister's
Economic Advisory Council (PMEAC) said on Wednesday.
"(It is) unlikely that growth will be lower than 6.25 per
cent, but may reach 6.75 per cent", PMEAC said in its Economic
Outlook for 2009-10 submitted to Prime Minister Manmohan Singh
by its chairman C Rangarajan.
On an average, PMEAC said economic growth could be around
6.5 per cent.
India's economic growth slowed down to 6.7 per cent
during 2008-09, from over 9 per cent recorded in the previous
three years, on account of global financial meltdown.
The PMEAC further said inflation, which is hovering
around one per cent, may firm up to 6 per cent by the end of
the current fiscal.
As regards farm sector, the report said agriculture
output will shrink by two per cent on account of adverse
impact of monsoon. Farm sector recorded a growth rate of 1.6
per cent in the previous fiscal.
Referring to the surge in food inflation, the PMEAC said
there has been a 33 per cent rise in prices of primary food
articles in the first half of the current fiscal, besides a
"sharper rise in consumer price indices".
On the positive side, the PMEAC projected industrial
recovery by pointing out that growth could jump to 8.2 per
cent during the fiscal compared to dismal 3.9 per cent during
2008-09.
The growth rate of services sector, it added, may
decelerate to 8.2 per cent from 9.7 per cent in the previous
fiscal.
Pointing out that there are encouraging signs of capital
flows, the PMEAC cautioned, "A further negative shock to the
global financial system and global inflation could threaten
growth in Indian economy".
However, it said that the investment rate was likely to
be 36.5 per cent of GDP, the same as recorded in the previous
fiscal. It, however, may pick up with improvement in domestic
conditions.
Savings rate, the PMEAC said, may inch up marginally to
34.5 per cent of GDP from 33.9 per cent during 2008-09. PTI
MG
per cent during the current financial year despite the adverse
impact of monsoon on farm sector output, the Prime Minister's
Economic Advisory Council (PMEAC) said on Wednesday.
"(It is) unlikely that growth will be lower than 6.25 per
cent, but may reach 6.75 per cent", PMEAC said in its Economic
Outlook for 2009-10 submitted to Prime Minister Manmohan Singh
by its chairman C Rangarajan.
On an average, PMEAC said economic growth could be around
6.5 per cent.
India's economic growth slowed down to 6.7 per cent
during 2008-09, from over 9 per cent recorded in the previous
three years, on account of global financial meltdown.
The PMEAC further said inflation, which is hovering
around one per cent, may firm up to 6 per cent by the end of
the current fiscal.
As regards farm sector, the report said agriculture
output will shrink by two per cent on account of adverse
impact of monsoon. Farm sector recorded a growth rate of 1.6
per cent in the previous fiscal.
Referring to the surge in food inflation, the PMEAC said
there has been a 33 per cent rise in prices of primary food
articles in the first half of the current fiscal, besides a
"sharper rise in consumer price indices".
On the positive side, the PMEAC projected industrial
recovery by pointing out that growth could jump to 8.2 per
cent during the fiscal compared to dismal 3.9 per cent during
2008-09.
The growth rate of services sector, it added, may
decelerate to 8.2 per cent from 9.7 per cent in the previous
fiscal.
Pointing out that there are encouraging signs of capital
flows, the PMEAC cautioned, "A further negative shock to the
global financial system and global inflation could threaten
growth in Indian economy".
However, it said that the investment rate was likely to
be 36.5 per cent of GDP, the same as recorded in the previous
fiscal. It, however, may pick up with improvement in domestic
conditions.
Savings rate, the PMEAC said, may inch up marginally to
34.5 per cent of GDP from 33.9 per cent during 2008-09. PTI
MG
