Deputy Chairman of Planning Commission Montek Singh Ahluwalia, on Wednesday, said that the current account deficit for the fiscal 2013-14 would be lower than 3 per cent of the GDP.
Speaking on in the sidelines of an academic session at the Indian School of Business, he said, “it will be in the range of 2.5 to 2.7 per cent and may not be above that. The fiscal deficit will be in the range of 4.8 per cent,” he said. The second-half of the year will do significantly well, according to him.
The ongoing infrastructure projects in the country were expected to give a boost to the economy, he said. The decline of the rupee should not be a concern, he added. “The growth will be good going forward. It may not be robust but significantly better. The economy has bottomed out, and it is destined to come back. The growth could be over 6 per cent,” he said.
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He said there would be a lot of investment flow in the next fiscal. This would add tremendous support to the economy, he added. However, Mr. Montek said, the six months before polls usually witnessed a slowdown due to a substantial dip in policy activity by the government and expected slow response from the system.