Indian economy may grow by 6.75 per cent during the current financial year despite the adverse impact of monsoon on farm sector output, the Prime Minister’s Economic Advisory Council (PMEAC) said on Wednesday.
“(It is) unlikely that growth will be lower than 6.25 per cent, but may reach 6.75 per cent”, PMEAC said in its Economic Outlook for 2009—10 submitted to Prime Minister Manmohan Singh by its chairman C Rangarajan.
On an average, PMEAC said economic growth could be around 6.5 per cent.
India’s economic growth slowed down to 6.7 per cent during 2008—09, from over 9 per cent recorded in the previous three years, on account of global financial meltdown.
The PMEAC further said inflation, which is hovering around one per cent, may firm up to 6 per cent by the end of the current fiscal.
As regards farm sector, the report said agriculture output will shrink by two per cent on account of adverse impact of monsoon. Farm sector recorded a growth rate of 1.6 per cent in the previous fiscal.