Global agencies have continuously been cutting the growth target of the Indian economy, which is under severe pressure due to the ballooning fiscal and current account deficit. Though, the government is making all its efforts to keep the numbers under budgeted limit but the global agencies are not obliging.
Now, the Prime Minister’s Economic Advisory Council (PMEAC) that had itself lowered the growth forecast for the current financial year to 5.3 percent from 6.4 percent it had projected earlier, has came to the defence and rejecting IMF and World Bank’s “unduly” pessimistic projections, PMEAC chairman C Rangarajan has exuded confidence that the growth would be around 5.5 percent in the current fiscal. Rangarajan further said that agriculture will do extremely well, while manufacturing too is likely to improve in second half. In August and September export growth rate was double digit that will also have an impact on domestic production. Therefore, we still stand by our earlier forecast,” he said.
Earlier this month, the World Bank slashed India's economic growth forecast for the current financial year to 4.7 percent from an earlier projection of 6.1 percent, while International Monetary Fund (IMF), in its World Economic Outlook, projected an average growth rate of about 3.75 percent, for India in 2013-14 and 5.1 percent next fiscal.
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