The economy expanded 4.7 per cent in 2013-14, the second straight year of sub-5 per cent growth, adding pressure on the new Narendra Modi-led Government to boost growth momentum after the ruling BJP bagged the strongest electoral mandate in 30 years.
This growth was lower than the advance estimate of 4.9 per cent put out by the Central Statistics Office (CSO) in February.
Growth in 2013-14 was weighed down by a fall in manufacturing and construction output. The fourth quarter of 2013-14 saw GDP growth of 4.6 per cent, same as the third quarter, but higher than the 4.4 per cent recorded in Q4 of 2012-13.
Lower fiscal deficit There was some cheer on the deficit front.
The fiscal deficit for the year 2013-14 came in at ₹5.08-lakh crore ($86.08 billion), which is 4.5 per cent of GDP.
This was lower than the reduced estimate of 4.6 per cent in the Budget in February as also the 4.9 per cent recorded in 2012-13.
Industry view Various indicators point to a bottoming out of deceleration and the economy could now be on a recovery course, according to FICCI President Sidharth Birla.
FICCI’s latest Economic Outlook Survey puts GDP growth at 5.5 per cent for 2014-15.
Encouraging sign Girish Vanvari, Co-Head of Tax, KPMG in India, said though by a fraction, the lower fiscal deficit of 4.5 per cent is encouraging as this would give the new government the elbow room to take bolder steps in Budget 2014-15.
This would help channel the much needed expenditure outlays for infrastructure development, he said.
The Confederation of Indian Industry (CII) said the GDP figures, which have eased to 4.6 per cent in Q4 and moderated to 4.7 per cent for 2013-14, are disappointing.
This confirms the fear that the economy would miss the target of 4.9 per cent predicted in the advanced estimates.