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OECD's growth forecast "completely wrong": Montek

Last Updated: Wednesday, November 28, 2012 - 21:23

New Delhi: Describing OECD's 4.4 percent economic growth forecast for India in the current fiscal as "completely wrong", Planning Commission Deputy Chairman Montek Singh Ahluwalia Wednesday said the think-tank does not know what it is doing.

"I was thinking of telling OECD that I just don't think that they know what they are doing," he said.

Admitting that 2012-13 was not going to a good year, Ahluwalia, however, said "OECD (Organisation for Economic Cooperation and Development) estimate is completely wrong."

Presenting a gloomy picture for India, the Paris-based think-tank OECD had said that growth rate was expected to decelerate sharply to 4.4 percent in the current fiscal from 6.9 percent growth in 2011-12.

The OECD, Ahluwalia said, had mechanically projected deceleration of growth rate without taking into consideration the expenditure trends and national accounting practises.

The OECD had failed to understand that there was a distortion in the data for the first quarter, he said, adding "they have mechanically projected as if deceleration has continued very sharply". Also, he added, the OECD did not take into account the fact there is bunching of subsidy.

The economic growth rate in the first quarter of the current fiscal (April-June) dipped to decade's low of 5.5 percent and the data for the second quarter is to be announced on November 30.

The Reserve Bank, as per the latest projections, expects the economic growth rate to slip further to 5.8 percent in the current fiscal from 6.5 percent recorded in 2011-12.


First Published: Wednesday, November 28, 2012 - 21:23
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