India's economy to turn around this fiscal: Montek

The sagging economy will see a turnaround this fiscal on the back of accelerating industrial production, improvement in global conditions and likelihood of good monsoon, the Planning Commission said today.

"All around the world the focus right now is, is (the year) 2013-14 a turnaround period? I think all the evidence we have for India suggests that for us it is a turnaround period", Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here.

"We have had not a good year, (which was) better year for many other countries. I think we are going to have much better year (2013-14)," he added.

Ahluwalia was responding to a question about economic growth prospects in view of accelerated industrial production to 2.5 per cent in March, softening of inflation, improved global conditions and likelihood of good Monsoon this fiscal.

The Central Statistical Organisation has pegged Indian economic growth at 5 per cent in 2012-13 in its advance states. The government hopes of registering GDP growth rate ranging between 6.1-6.7 per cent in 2013-14.

The recently released industrial output data for March revealed that there is acceleration in production. The factory output grew by 2.5 per cent in March this year.

Meanwhile, the inflation measured in terms of Wholesale Price Index (WPI) fell to 3.5-year low of 4.89 per cent in April compared to 5.96 per cent in March this year and 7.50 per cent in April, 2012.

The retail inflation, as measured by consumer price index, also came down to single digit at 9.39 per cent in April after many months, indicating that inflationary expectation is on declining trend.

Besides, India Meteorological Department has forecast that there would be normal rainfall (this year) at 98 per cent of the long period average (LPA) of 89 cm during the monsoon.

Photograph: B Mathur/Reuters