Indian economy to grow at 5.5% in current fiscal: PM

Indian economy will grow at about 5.5% in the current fiscal and the first quarter numbers are expected to be relatively flat, Prime Minister Manmohan Singh said today.

'I believe this year, growth rate will be about 5.5%,' he said in his reply to a debate on the state of the Indian economy in the Rajya Sabha.

The economic growth slowed to a decade low of 5% during the 2012-13 fiscal on account of poor performance of manufacturing sector.

In the Budget, the government had projected economic growth for the current fiscal at between 6.1-6.7%.

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Singh said the government has taken measures to revive growth, the results of which would be visible in the second half of the fiscal, even as the first quarter (April-June) growth will be relatively flat.

'Growth has slowed in recent quarters. I expect growth in the first quarter of 2013-14 to be relatively flat, but as the effects of good monsoon kicks in, I expect it to pick up,' he said.

The GDP figures for first quarter are scheduled to be released at 1730 hrs today. The growth in the first quarter of last fiscal was at 5.5%.

In order to boost growth, the government has taken a number of initiatives including setting up of Cabinet Committee on Investments (CCI) for reviving stalled projects. Since January 1, the CCI has cleared projects worth over Rs three lakh crore this year.

'In fact, we have the ambition, we have the means, we have the resources and the will power to put the economy back on the realms of high stable growth of 6-8% in two to three years to come,' he said.

He dismissed fears of GDP growth rate coming down to 3%, saying that it was 'entirely unfounded.