Indian economy is expected to grow at 6.5 per cent in the current fiscal. Releasing the review of the economy for 2012-13, the Chairman of Prime minister's Economic Advisory Council, Dr. C. Rangarajan said, Agriculture sector will growth at 3.5 per cent with an expectation of a normal monsoon. He pegged industrial growth at 4.9 per cent. Mr. Rangarajan said, economic growth rate had slipped to decade's low of 5 per cent in 2012-13 mainly on account of the impact of the global financial woes. He said the growth estimate may be revised.
Dr. Rangarajan said the steps taken by the government to speed up project clearances since September will show results in the current fiscal.
He said liberalising FDI may stimulate investment. It is expected to be at 32 per cent in 2013-14. Dr Rangarajan said that high gold, coal and crude oil imports remain a concern and called for steps to boost capital inflows in the short term. On current account deficit (CAD), Rangarajan said, the Current Account Deficit is a concern and put it 4.7 per cent for the current financial year.
The PMEAC Chairman advocated policy actions for achieving higher economic growth, including speedy project clearances, control over fuel subsidies, reducing current account deficit, and reforms in Agricultural marketing and supply chains. Terming power availability as extremely important for the economy, Mr. Rangarajan favoured boosting domestic coal production to meet energy needs which will also help in reducing coal import bill. He said, net oil imports and gold acount for bulk of the increase in merchandise trade deficit.