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The Indian economy would grow at a rate of between 5 and 5.5 per cent in the current fiscal and could expand by 7 per cent in 2013-14, said Plan panel Deputy Chairman Montek Singh Ahluwalia.
“It (GDP growth rate) would be somewhere between 5 and 5.5 per cent. If everything worked perfectly, I would not rule out seven per cent next year (2013-14),” Ahluwalia said in an interview to PTI.
His comments came after the Central Statistical Organisation (CSO) projected five per cent economic growth this fiscal in its advance estimates released earlier this month.
In a best case scenario the growth could climb to “5.5 per cent” this fiscal, he said, adding “if there was strength in the recovery then many more signs would have been evident”.
Economic growth in 2011-12 slipped to 6.2 per cent from 9.3 per cent a year ago mainly on account of global factors and subdued investor sentiments.
Gross domestic product (GDP) of the country grew by 5.5 per cent in the April-June quarter and further declined to 5.3 per cent in the July-September quarter.
The recent industrial production data which reflects the health of mainly the manufacturing sector, has also portrayed a dismal picture. Manufacturing constitutes almost 75 per cent of the IIP.
The factory output measured in terms of the Index of Industrial Production (IIP) for December 2012 has contracted by 0.6 per cent for the second straight month. IIP declined by 0.8 per cent in November 2012.
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