Economy to grow at 5.5% in current fiscal,7% in 2013-14:Montek

Economy to grow at 5.5% in current fiscal,7% in 2013-14:Montek New Delhi: Indian economy would grow at a rate of between 5 and 5.5 percent in current fiscal and could expand by 7 percent in 2013-14, said Plan panel Deputy Chairman Montek Singh Ahluwalia.

"It (GDP growth rate) would be somewhere between 5 and 5.5 percent. If everything worked perfectly, I would not rule out seven percent next year (2013-14)", Ahluwalia said in an interview.

His comments came after the Central Statistical Organisation (CSO) has projected five percent economic growth this fiscal in its advance estimates released earlier this month.

In best case scenario the growth could climb to "5.5 percent" this fiscal, he said, adding "if there was strength in the recovery then many more signs would have been evident".

Economic growth in 2011-12 slipped to 6.2 percent from 9.3 percent a year ago mainly on account of global factors and subdued investor sentiments.

Gross Domestic Production (GDP) of the country has grown by 5.5 percent in April-June quarter and further declined to 5.3 percent in July-September quarter.

The recent industrial production data which reflects the health of mainly the manufacturing sector, has also portrayed a dismal picture. Manufacturing constitutes almost 75 percent of the IIP.

The factory output measured in terms of Index of Industrial Production (IIP) for December, 2012, has contracted by 0.6 percent for second straight month. IIP declined by 0.8 percent in November 2012.

PTI