The Planning Commission expects the economy to grow by 6.5 per cent during the current fiscal, and inflation of food articles to moderate in the coming months with the arrival of rabi crops. <br/>The Deputy Chairman Planning Commission told reporters today at the Economic Editors' Conference in New Delhi that assessment of economic growth is marginally higher than 6.3 per cent projected by the Commission earlier. Prime Minister's Economic Advisory Council (PMEAC) too had projected 6.5 per cent economic expansion in this fiscal. <br/>Expressing concern over inflation, especially of the food articles, Mr. Ahluwalia said the prices have started coming down and would decline further in the next few months with the arrival of rabi crop. <br/>The Agriculture Minister Mr. Sharad Pawar said in the conference that the prices of the food items might come down only after the ensuing Rabi season. He said due to impact of scant monsoon and floods the prices will not come down immediately. He said that the growth of agriculture would hover around 1.5 percent this year. The agriculture minister said that 10 lakh tones of wheat and 5 lakh tones of rice have been allocated for open market sale to moderate the prices. Mr. Pawar said enough food grain stocks are available including rice and wheat in the go downs to bridge the gap between demand and supply. <br/>Interacting with the reporters in the conference, the power minister said that over 18,200 MW of electricity have been added to the pool in the current five-year plan so far. A capacity addition of over 62,000 MW will be achieved in the plan period which is below the target of over 78,000 MW. <br/> In reply to a question that China is constructing a dam on the river Brahmputra, he said that New Delhi is keenly watching the developments on its borders with the neighbouring countries. A leading newspaper published from Delhi reported that remote sensing satellite pictures show that China is constructing a dam along the boarder.<br/>
News On AIR | November 4, 2009 8:07 PM
Govt. expects GDP at 6.5% during current fiscal year; prices to fall after rabi crop