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Rediff.com  » Business » 6% GDP growth certain next fiscal, says Montek

6% GDP growth certain next fiscal, says Montek

November 27, 2013 14:08 IST

GrowthExuding confidence that economy will be back on high growth trajectory, Plan panel Deputy Chairman Montek Singh Ahluwalia today said that GDP will expand by over 6 per cent next fiscal and performance will be better in second half of this fiscal.

"I could easily say that it (economic growth) will be over 6 per cent, depending upon the policy of new government," Ahluwalia said addressing an event of Indian School of Business in Hyderabad.

". . . I think it (revival in the economic growth) will be evident in the next six months..next year on the other hand, we can reasonably expect a very strong improvement in performance," he said.

"I expect the second half of current year (fiscal) to be better than the first half. I don't think that at the moment, we see signs of strong revival yet. But I do get a picture that people think that the (decline) in the economy has bottomed out," he added.

According to the government data available, India's gross domestic product or economy grew at a decade low rate of 5 per cent in the last fiscal.

There seems to be persistent sluggishness in the economy as gross domestic product growth slowed down to 4.4 per cent in April-June quarter from 4.8 per cent in January-March quarter this year.

The economy had grown at 5.4 per cent in the corresponding quarter of April-June last fiscal.

Later talking to reporters, Ahluwalia said, "The current account deficit will be between 2.5 to 2.7 per cent of GDP this fiscal."

CAD is a difference between outflow and inflow of foreign exchange.

It was at $88.2 billion or 4.8 per cent of GDP in the last fiscal.

The Finance Ministry expects it to be at $56 billion or less this financial year.

Ahluwalia also said that many of actions taken (by the government) will allow investment to flow in.

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