Business Standard

Economy likely to grow by 5.5-6 pc in 2012-13:Rajan

Press Trust of India  |  New Delhi 

"I would be surprised if there is more deterioration (in growth rate) from here ... The numbers that have been talked about are in the 5.5-6 per cent range. And I feel comfortable sitting with that," he told reporters on the sidelines of the Ficci AGM here.

Industrial output bounced back to 8.2 per cent in the month of October, against a contraction of 5 per cent in the corresponding month a year ago.

"I think it is too early to say confidently that the economy has turned the corner ... Given that the beginning of the announcements that increased confidence, buoyancy in the stock markets started in September, this creates an environment for business to start investing," Rajan said.

The government has taken a number of policy decisions since September including liberalising of the FDI norms for multi-brand retail and civil aviation sector.

Economic growth during the first half of current fiscal stood at 5.4 per cent against 7.3 per cent during the corresponding period of previous year.

The economic growth slowed to a nine year low of 6.5 per cent in 2011-12 and this year, too, the growth, as per RBI's estimates, is likely to be 5.8 per cent. In the three years preceding the 2008 global economic crisis, India was growing at a rate of more than 9 per cent.

Rajan said the government would do its best to stick to the 5.3 per cent fiscal deficit target for the current fiscal.

"We have to be careful about everything we spend on. Thats how we are going to get back on fiscal track, being careful," he added.

  

RECOMMENDED FOR YOU

Economy likely to grow by 5.5-6 pc in 2012-13:Rajan

The economy is likely to grow at 5.5-6 per cent this fiscal with a marginal improvement in the second half of the current financial year, Chief Economic Advisor Raghuram Rajan said here today.

"I would be surprised if there is more deterioration (in growth rate) from here ... The numbers that have been talked about are in the 5.5-6 per cent range. And I feel comfortable sitting with that," he told reporters on the sidelines of the Ficci AGM here.

Industrial output bounced back to 8.2 per cent in the month of October, against a contraction of 5 per cent in the corresponding month a year ago.

"I think it is too early to say confidently that the economy has turned the corner ... Given that the beginning of the announcements that increased confidence, buoyancy in the stock markets started in September, this creates an environment for business to start investing," Rajan said.

The government has taken a number of policy decisions since September including liberalising of the FDI norms for multi-brand retail and civil aviation sector.

Economic growth during the first half of current fiscal stood at 5.4 per cent against 7.3 per cent during the corresponding period of previous year.

The economic growth slowed to a nine year low of 6.5 per cent in 2011-12 and this year, too, the growth, as per RBI's estimates, is likely to be 5.8 per cent. In the three years preceding the 2008 global economic crisis, India was growing at a rate of more than 9 per cent.

Rajan said the government would do its best to stick to the 5.3 per cent fiscal deficit target for the current fiscal.

"We have to be careful about everything we spend on. Thats how we are going to get back on fiscal track, being careful," he added.

  
image
Business Standard
177 22

Economy likely to grow by 5.5-6 pc in 2012-13:Rajan

"I would be surprised if there is more deterioration (in growth rate) from here ... The numbers that have been talked about are in the 5.5-6 per cent range. And I feel comfortable sitting with that," he told reporters on the sidelines of the Ficci AGM here.

Industrial output bounced back to 8.2 per cent in the month of October, against a contraction of 5 per cent in the corresponding month a year ago.

"I think it is too early to say confidently that the economy has turned the corner ... Given that the beginning of the announcements that increased confidence, buoyancy in the stock markets started in September, this creates an environment for business to start investing," Rajan said.

The government has taken a number of policy decisions since September including liberalising of the FDI norms for multi-brand retail and civil aviation sector.

Economic growth during the first half of current fiscal stood at 5.4 per cent against 7.3 per cent during the corresponding period of previous year.

The economic growth slowed to a nine year low of 6.5 per cent in 2011-12 and this year, too, the growth, as per RBI's estimates, is likely to be 5.8 per cent. In the three years preceding the 2008 global economic crisis, India was growing at a rate of more than 9 per cent.

Rajan said the government would do its best to stick to the 5.3 per cent fiscal deficit target for the current fiscal.

"We have to be careful about everything we spend on. Thats how we are going to get back on fiscal track, being careful," he added.

  

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard