‘Govt must take action on pricing of diesel and LPG’
Was the 5.3 per cent GDP growth in the fourth quarter expected?
The GDP data for the fourth quarter at 5.3 per cent is disappointing. Industrial production has been steadily declining and the negative growth in manufacturing in the fourth quarter was on expected lines. But the decline in the services sector of ‘trade, hotels, transport and communication’ was completely unexpected. These two factors contributed to the downward revision in GDP growth to 6.5 per cent for 2011-12 also as compared to the advance estimate of 6.9 per cent.
What is your forecast for the economy in the current fiscal?
The 6.5 per cent growth in last fiscal was not bad in the current world economic situation, though it was lower than the CSO forecast. I expect the economy to grow at between 6.5 to 7 per cent in 2012-13. The farm sector will do well as the expectation is for a normal monsoon and services should also grow at a strong pace. Manufacturing will fare better due to the low base effect. Investments should also start picking up, as can be seen from the fourth quarter data.
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