GDP in 2011-12 may be above 7%: PMEAC chief
Prime Minister's economic advisory panel chief C Rangarajan today said that the economic growth rate in 2011-12 could be over 7%, slightly higher than the projection of the Central Statistical Organisation.business Updated: Feb 07, 2012 15:41 IST
Prime Minister's economic advisory panel chief C Rangarajan on Tuesday said that the economic growth rate in 2011-12 could be over 7%, slightly higher than the projection of the Central Statistical Organisation.
"If industrial production picks off in the current quarter, then I will not be surprised if the final or revised estimate is 7% or more than 7%," Rangarajan, who is the chairman of the Prime Minister's economic advisory council, said in Mumbai.
His comments came after the CSO, in its Advanced Estimates, said the economic growth is likely to fall to a three-year low of 6.9% in 2011-12.
This, it said, was mainly due to sharp slowdown in manufacturing, agriculture and mining sectors, against 8.4% expansion in the last fiscal.
"The numbers (in Advanced Estimates) are below 7% but my expectation is that when the final estimate comes it will be more than 7% for this fiscal," Rangarajan said.
As per the data, agriculture and allied activities are likely to grow at 2.5% in 2011-12, compared to a robust growth of 7% in 2010-11.
Manufacturing growth is also expected to drop down to 3.9% in this fiscal from 7.6% in 2011.
The CSO's GDP growth projection is a tad lower than the 7% forecast made by the Reserve Bank of India in its quarterly monetary policy review in December 2011.
In its mid-year Economic Review, the government had pegged growth at around 7.5%.