Planning Comm expects 7% growth despite monsoon shadow
New Delhi: The Planning Commission expects
the economic growth rate to marginally move up to 7 per cent
in the current fiscal despite the monsoon casting its shadow
on agricultural output.
"I think (economic growth during 2009-10)... between 6.5
and 7 per cent will be quite a good outcome," Planning
Commission Deputy Chairman Montek Singh Ahuwalia told
Noting that the recent pick-up in the industrial sector
will have positive implications for growth in the current
fiscal, he said, "On the agriculture side, the news is less
good than what we hoped."
Replying to questions on the impact of the bad monsoon on
farm sector growth, Ahluwalia said, "There is still deficiency
in different parts of the country. It is too early to tell
its effect on the country as a whole ... but of course
individual states can have problems."
Noting that growth projections of various think tanks
vary between 6.7 and 7 per cent, while some indicating more
than 7 per cent economic expansion, he said that this would
not be bad under current circumstances.
Having grown by over 9 per cent in three consecutive
years, economic growth slipped to 6.7 per cent during 2008-09,
mainly on account of the impact of the global financial crisis
on the country.