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Growth rate expected to be 6% this fiscal: Rangarajan

Last Updated: Monday, July 1, 2013 - 21:17

New Delhi: India's economic growth rate is expected to be at least 6 percent in the 2013-14 fiscal, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan said Monday.

The projection is, however, lower than the earlier PMEAC estimates.

"The PMEAC had earlier estimated the growth in current fiscal to be 6.4 percent, but I am confident the growth of Indian economy will be 6 percent in this fiscal if not more," Rangarajan said at an event here.

Last week, he had said the growth is expected to be more than 6 percent in the current financial year.

Growth rate in 2012-13 is estimated at 5 percent, which is a decade low number. The economy grew at 4.8 percent in the fourth quarter of FY13.

The Reserve Bank has projected the economy to grow at 5.7 percent in the current fiscal, while the Finance Ministry has forecast 6.1-6.7 percent growth.

On RBI stand on key interest rate, Rangarajan said that monetary policy has a role to play even if inflation is high on account of supply side constraints.

"Monetary policy has role to play. As Wholesale Price Index (WPI)-based inflation is coming down, as pressure on rupee eases, it will give RBI greater space to reduce policy rates," he said.

WPI-based inflation had fallen to 4.7 percent in May.

The Reserve Bank in its last mid-quarter policy review had kept the key interest rates unchanged at 7.25 percent, citing elevated food inflation, rupee depreciation and uncertainty over foreign fund inflows.

PTI

First Published: Monday, July 1, 2013 - 21:17
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