India’s economic growth would pick-up in 2013-14 and record six per cent plus levels, C. Rangarajan, Chairman to the Prime Minister’s Economic Advisory Council (PMEAC), said. He added that public sector investments would act as drivers of growth this fiscal.
At a CA Institute event here on Monday, Rangarajan, when asked if he was cutting down his GDP growth forecast, told Business Line that he expected growth to range between 6-6.4 per cent. “It will be six per cent plus and about 6-6.4 per cent,” he said, while admitting that the official PMEAC position was growth forecast of 6.4 per cent this fiscal.
Rangarajan stressed the need for added focus on the agriculture and power sectors to improve the economic situation. He maintained that India could record robust economic growth rates even at the reduced investment rates of 30 per cent.
“Investment rate of 30 per cent is still not low. It is lower than 2007-08. But is a reasonably high rate. It gives us hope that if obstacles are removed, India can record higher growth rates in the short run,” he said.
Asked about his expectations from the Reserve Bank of India on July 31, Rangarajan said RBI’s policy rate action would largely depend on its perception of the rupee.
srivats.kr@thehindu.co.in