Prime Minister’s economic advisor C Rangarajan has said the economy is likely to grow by around 9 per cent in the fourth quarter and would make up for the slow expansion in the October-December period to clock a growth of 7.2 per cent this fiscal.
“For a 7.2 per cent growth rate, the economy has to grow by about 9 per cent in the fourth quarter...We should be able to grow adequately in the last quarter to reach the growth rate of 7.2 per cent,” Prime Minister’s Economic Advisory Council chairman Rangarajan told PTI.
GDP growth slipped to 6 per cent in the December quarter, mainly due to a major contraction in farm output and certain services. While farm output contracted by a 2.8-percentage points due to the worst drought in 40 years, there was a 2.2-percentage points downward spiral in community, social and personal services sectors too.
Mr. Rangarajan further said industrial growth will continue to be robust and rabi (winter) crops are also supposed to be good.
Industrial production surged by a stunning 16.8 per cent in December, against the contraction of 0.2 per cent in the same month a year ago.
In its advance estimates, the Central Statistical Organisation has pegged the economic growth during 2009-10 at 7.2 per cent.
While the economy managed to grow by just 6.1 per cent in the first quarter of this fiscal, it expanded at a stunning 7.9 per cent in the second quarter, raising hopes that the economy is now on sustained growth path.
On Saturday, finance minister Pranab Mukherjee also said the economy might register 7.2 per cent growth rate in the current fiscal, despite the third quarter showing just 6 per cent expansion.
Planning Commission deputy chairman Montek Singh Ahluwalia added, “despite global factors being uncertain, I am confident that the fourth quarter GDP growth will be close to 8 per cent.”
