Growth to remain flat in Q1 and pick up from Q2 to Q4, says FM
23 Aug 2013 10:45 PM GMT
Admitting the Indian economy is challenged, Finance Minister P Chidambaram on Thursday said the country's economic growth is likely to remain flat in the first quarter of the current fiscal, but is likely to pick up in the remaining three quarters.
'Thanks to the global slowdown as well as some domestic factors, the Indian economy is challenged. We expect that the growth trend will remain flattish in the first quarter of the current fiscal,' Chidambaram said.
'We expect that growth will pick up in the second quarter to fourth quarter,' he added.
Elaborating further, the Finance Minister said the growth in the remaining three quarters will pick up on back of increase in sown area by about 9.1 per cent, acceleration in Plan expenditure and impact of the projects cleared by the CCI in last few months.
India's GDP growth in first quarter of last fiscal was 5.5 per cent.The country's economic growth has slowed down to 5 per cent in the last fiscal year, the lowest in a decade, on account of poor performance of manufacturing, agriculture and services sector.
The minister further said the government, during the last 12 months, has taken a number of measures to contain inflation and revive investment and growth.
' Some results are visible, yet there are many challenges that have to be overcome,' he said. To restrict outflows of foreign currency, the RBI on August 14 announced stern measures, including curbs on Indian firms investing abroad and outward remittances by resident Indians.
Chidambaram hoped that capital inflows in due course will correct the position of rupee. With increase in FDI inflows by over 70 per cent in the first quarter and exports putting up better performance, the current account deficit (CAD) is showing improvement, he said.
'... CAD is narrower. We are exploring structural measures to further reduce CAD to sustainable levels and, in the mean time, to improve capital flows,' he said, adding that the growth promotion will continue to be the focus of the government.
'Stronger growth will, in the course of time, alleviate many of the challenges that we face,' he said.Growth in the first quarter of current fiscal is likely to remain flattish, Chidambaram said.
'We are in better health than many other countries of the world.... we expect growth will pick up in Q2 to Q4,’ he added.
'Thanks to the global slowdown as well as some domestic factors, the Indian economy is challenged. We expect that the growth trend will remain flattish in the first quarter of the current fiscal,' Chidambaram said.
'We expect that growth will pick up in the second quarter to fourth quarter,' he added.
Elaborating further, the Finance Minister said the growth in the remaining three quarters will pick up on back of increase in sown area by about 9.1 per cent, acceleration in Plan expenditure and impact of the projects cleared by the CCI in last few months.
India's GDP growth in first quarter of last fiscal was 5.5 per cent.The country's economic growth has slowed down to 5 per cent in the last fiscal year, the lowest in a decade, on account of poor performance of manufacturing, agriculture and services sector.
The minister further said the government, during the last 12 months, has taken a number of measures to contain inflation and revive investment and growth.
' Some results are visible, yet there are many challenges that have to be overcome,' he said. To restrict outflows of foreign currency, the RBI on August 14 announced stern measures, including curbs on Indian firms investing abroad and outward remittances by resident Indians.
Chidambaram hoped that capital inflows in due course will correct the position of rupee. With increase in FDI inflows by over 70 per cent in the first quarter and exports putting up better performance, the current account deficit (CAD) is showing improvement, he said.
'... CAD is narrower. We are exploring structural measures to further reduce CAD to sustainable levels and, in the mean time, to improve capital flows,' he said, adding that the growth promotion will continue to be the focus of the government.
'Stronger growth will, in the course of time, alleviate many of the challenges that we face,' he said.Growth in the first quarter of current fiscal is likely to remain flattish, Chidambaram said.
'We are in better health than many other countries of the world.... we expect growth will pick up in Q2 to Q4,’ he added.
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