The Chairman of Prime Minister’s Economic Advisory Council (PMEAC), C. Rangarajan, has said that global credit rating agencies had taken a “very pessimistic view” by cutting the growth forecast for India.

Admitting that the growth rate in the current year would be very much below the target set out for the XII Plan, he expressed the hope that it could be made up in the subsequent years over the five-year time scale. Dr. Rangarajan was responding to a question about the Approach Paper for the XII Plan envisaging 9-9.5 per cent growth while speaking to reporters on the sidelines of the maiden convocation of Indian Institute of Technology, Hyderabad.

The EAC of the Prime Minister would meet within two weeks and come out with a reassessed view on the growth outlook, he added. As of now, however, he said the growth was expected to be a shade better than last year’s 6.5 per cent. The first-half of the year will not show significant growth in industrial production but it would pick up in the next half. This was partly because of the slow down in the base effect last year which would get reflected in the first half of the current fiscal.

Dr. Rangarajan also said that the GDP growth from agriculture might show a slight increase over last year. Agricultural production could pick up in the second-half.

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