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GDP expected to grow by 5.2-5.7 pc in FY15: NCAER
July 29, 2014

News Source : The Economic Times, New Delhi

NEW DELHI: With manufacturing sector showing signs of nascent recovery, economic think tank NCAER expects India's GDP to expand at 5.2-5.7% this fiscal. 

"GDP growth rate for 2014-15 is projected at 5.2-5.7%. The higher growth of 5.7% is conditional on pick up of investment spending," National Council of Applied Economic Research (NCAER) said in a statement. 
India recorded sub-five per cent in 2012-13 and 2013-14 due to general global slowdown and domestic factors, like high interest rate and stubborn inflation. The Economic Survey expects the country's economy to expand by 5.4-5.9% this fiscal. 
The index of industrial production ( IIP), the principal indicator for industrial activity grew by 3.4% and 4.7% in the months of April and May 2014, respectively. Manufacturing, which accounts for 75% of the index, showed signs of nascent recovery, clocking a growth of 2.5% and 4.8% in April and May, respectively, as against negative growth in the earlier months. 
NCAER further said growth in agriculture sector is likely to be lower in 2014-15 year-on-year due to poor monsoon. It also expects the fiscal deficit at 4.5% of GDP for 2014-15. 
Finance minister Arun Jaitley while presenting the Budget had said government will retain the fiscal deficit target for 2014-15 at 4.1% of GDP. NCAER has projected the wholesale price based average inflation rate at 6.4% in the fiscal.
Published in: The Economic Times, July 29, 2014 


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