Rangarajan expects economic growth to moderate to 6%

Last Updated: Tuesday, August 11, 2009 - 22:19

New Delhi: Newly-appointed chairman of the
Prime Minister`s Economic Advisory Council C Rangarajan
expects the economic growth to moderate to 6 per cent on
account of a delayed monsoon, as compared to 6.7 per cent in
the previous fiscal.

New Delhi: Newly-appointed chairman of the
Prime Minister`s Economic Advisory Council C Rangarajan
expects the economic growth to moderate to 6 per cent on
account of a delayed monsoon, as compared to 6.7 per cent in
the previous fiscal.

Pointing out that the poor monsoon will affect farm
output, Rangarajan said, "Agriculture production will be hit,
especially the kharif (summer crop)".

However, he added, the impact of poor agriculture
production on the Gross Domestic Product (GDP) during the
current fiscal may not be much.

"Overall growth rate will not be impacted much, as
agriculture has just 18-20 per cent contribution in the
country`s GDP," said Rangarajan, who headed the PMEAC from
2005 to 2008.

Having registered an average economic growth of nine per
cent during the three consecutive years, the GDP growth rate
slipped to 6.7 per cent in 2008-09, mainly on account of the
impact of the global financial crisis on the country.

The Reserve Bank, in its first quarterly review of the
annual monetary policy last month, had projected 6 per cent
GDP growth for the current fiscal with an upward bias.

Bureau Report



First Published: Tuesday, August 11, 2009 - 22:19

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