New Delhi: Indian industry Tuesday hoped that the projections given by the PM's economic advisory panel for farm sector growth will help in arresting inflation which would provide room to the RBI to cut interest rates.
"We are particularly happy to note that agriculture is projected to grow above its trend rate in the current year, which augurs well for arresting inflationary expectations, providing necessary leg room for RBI to manoeuvre monetary policy in favour of growth", CII Director General Chandrajit Banerjee said in a statement.
Stating that the economic slowdown has bottomed out, Prime Minister's Economic Advisory Council (PMEAC) has pegged the growth rate for the current fiscal at 6.4 percent, up from 5 percent in 2012-13.
The PMEAC said that the agriculture and allied sector is expected to grow at a faster rate of 3.5 percent in 2013-14 fiscal if the country receives normal monsoon this year.
"As the economic recovery is yet to take a firm footing, it is imperative that we remain focused on introducing the critical reform measures," Banerjee said.
He said the PMEACs projection indicates that slowdown in economy has bottomed out.
Sharing similar views, Assocham said the projections by the PMEAC reflects optimism on the performance of the economy.