The second and third quarters of FY’10 are unlikely to see the economy expanding at the pace it did in April-June period, but that does not warrant a downward revision of growth forecast, the Finance Minister Pranab Mukherjee, said on Monday.
The government estimates that the economy would grow by more than six per cent this fiscal. While the first quarter growth was a healthy 6.1 per cent, the numbers for the following two quarters are expected to be inadequate.
Mr. Mukherjee, addressing the forum of financial writers, said that he was, however, not revising the target of six per cent-plus growth rate for the fiscal as the economy will expand at a higher pace in the fourth quarter.
“So far as growth is concerned, I am a little doubtful whether the economy will grow at the same level in second quarter and third quarter as in first quarter. Agriculture growth may be a little less,” he said in his opening remarks.
The first quarter growth reflected the stimulus measures provided by the government and the Reserve Bank.
There are apprehensions that erratic monsoon and drought in many parts of the country will slow down farm output in the next six months. The agricultural sector grew by 2.4 per cent in the first quarter of this fiscal as compared to 3 per cent in the same period last year.