Expecting economic recovery in the quarter beginning January, India's chief statistician TCA Anant on Wednesday said the economic growth rate in the current fiscal is likely to be close to 7.5%.
"There is some expectation that there may be revival in manufacturing growth in ...fourth quarter. If that happens, we can hope to see an end year figure (GDP growth rate) of close to 7.5%," he told reporters in New Delhi.
He said this while commenting on the latest Gross Domestic Product (GDP) data which revealed a sharp dip in growth rate to a nine-quarter low of 6.9% in July-September. This was compared to 8.4% in the corresponding period of last fiscal.
"Our expectations are that as we will get (revised) data for later part of the agriculture year, we may see some improvement in the agriculture production and growth. That may be a factor which will improve overall growth picture", he added.
During the three-month period ending September 30, 2011, growth in the manufacturing sector dipped to a meagre 2.7% from 7.8% in the corresponding period of 2010-11.
Farm output also exhibited a similar trend and expanded by just 3.2% during the quarter under review, compared to 5.4% growth in the corresponding period last fiscal.
About fall in growth in the capital formation, he said, "If there is improvement in (public) sentiment, which is likely given the sort of policy announcement government had made...we may see an improvement in capital formation."
The Gross Fixed Capital Formation is estimated at Rs 4,02,994 crore in quarter ending September this year as compared to Rs 4,05,567 crore in the same period last year.
He admitted that global (slowdown) scenario is hurting investor sentiment in India.