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India's GDP growth to remain sluggish at 4.9% in current financial year: India Ratings

24 Oct 2013 Evaluate

India Ratings & Research expects India's GDP growth to remain below the five percent mark at 4.9% in the current financial year on account of a mix of domestic and external factors. However, as per the rating agency, the growth could sink lower than this level had it not been for good performance of agriculture sector on the back of favorable monsoon.

Agriculture is expected to grow at 4.5% in this fiscal as against 1.8% in 2012-13. In the 2013 monsoon season (June 1 to September 30), the country received 6 percent higher rainfall than the long period average.

Further, according to India Ratings, industrial growth in FY'14 is likely to be 2.2%, lower than 3.1% recorded in FY'13, while service sector, which recorded double-digit growth from FY'06 to FY'10, is also facing heat of slowdown and is expected to come lower at 6.3% Y-o-Y in FY'14 from 6.6% Y-O-Y in FY'13.

Indian economy, which has been witnessing a growth slowdown since FY’12, has been growing well below its potential and last 10 years trend growth rate of around 8%.

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