The Chairman of PM’s Economic Advisory Council, Suresh Tendulkar, said on Monday that the economy would expand by at least seven per cent during the current fiscal provided the monsoon does not fail.
He ruled out the need for pressing the panic button at the moment.
Talking to news persons on the sidelines of a function to observe the third Statistics Day here, Tendulkar said, “If the monsoon does not fail, the economy will grow by at least 7 per cent (during 2009-10).
Asked about the impact of delayed monsoon on agriculture and the economy, Tendulkar said, “It is too early to press the panic button.”
Rainfall, according to latest official estimates, is likely to be only 93 per cent of the long-period average.
As regards inflation, Tendulkar said, it is likely to remain between five and six per cent by the end of current financial year.
“The Wholesale Price Index would still be under 5-6 per cent, if monsoon are all right. If monsoon fails, it will be little more”, he added.
Tendulkar also expressed the confidence that the economy, which has been reeling under the impact of the global financial meltdown, will recover by September.