New Delhi: The sagging economy will see a turnaround this fiscal on the back of accelerating industrial production, improvement in global conditions and likelihood of good monsoon, the Planning Commission said Tuesday.
"All around the world the focus right now is, is (the year) 2013-14 a turnaround period? I think all the evidence we have for India suggests that for us it is a turnaround period", Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here.
"We have had not a good year, (which was) better year for many other countries. I think we are going to have much better year (2013-14)," he added.
Ahluwalia was responding to a question about economic growth prospects in view of accelerated industrial production to 2.5 percent in March, softening of inflation, improved global conditions and likelihood of good Monsoon this fiscal.
The Central Statistical Organisation has pegged Indian economic growth at 5 percent in 2012-13 in its advance states. The government hopes of registering GDP growth rate ranging between 6.1-6.7 percent in 2013-14.
The recently released industrial output data for March revealed that there is acceleration in production. The factory output grew by 2.5 percent in March this year.
Meanwhile, the inflation measured in terms of Wholesale Price Index (WPI) fell to 3.5-year low of 4.89 percent in April compared to 5.96 percent in March this year and 7.50 percent in April, 2012.
The retail inflation, as measured by consumer price index, also came down to single digit at 9.39 percent in April after many months, indicating that inflationary expectation is on declining trend.
Besides, India Meteorological Department has forecast that there would be normal rainfall (this year) at 98 percent of the long period average (LPA) of 89 cm during the monsoon.