With economy showing signs of revival in the second quarter of this fiscal, Planning Commission deputy chairman Montek Singh Ahluwalia on Saturday said that the deceleration in GDP growth has bottomed out.
"In the first quarter of this financial year, GDP growth was 5.5%, while in last quarter of last financial year it was 5.3%, so it can be said that deceleration in growth has bottomed out," Ahluwalia said on the sidelines of a CII-Invest North conference in Gurgaon.
Indian economy grew at a nine-year low rate of 5.3% in January-March quarter in the last financial year and also in the last fiscal at 6.5%. The economy showed signs of recovery when it grew by 5.5% in the April-June quarter of 2012-2013.
Annual growth in the eight core sector industries more than doubled to a seven-month high of 5.1% in September on good production in coal, cement and petroleum refinery sectors.
Showing signs of turnaround, industrial production measured in terms of Index of Industrial Production grew by 2.7% in August, reversing the trend of contraction witnessed during the previous two months.
He said the recent steps taken by the government to revive sentiment and growth momentum in the economy will start showing results by January.