Economy likely to grow by 5.5-6% in 2012-13: Rajan
The economy is likely to grow at 5.5-6 per cent this fiscal with a marginal improvement in the second half of the current financial year, Chief Economic Advisor Raghuram Rajan said here today.
"I would be surprised if there is more deterioration (in growth rate) from here ... The numbers that have been talked about are in the 5.5-6 per cent range. And I feel comfortable sitting with that," he told reporters on the sidelines of the Ficci AGM here.
Industrial output bounced back to 8.2 per cent in the month of October, against a contraction of 5 per cent in the corresponding month a year ago.
"I think it is too early to say confidently that the economy has turned the corner … Given that the beginning of the announcements that increased confidence, buoyancy in the stock markets started in September, this creates an environment for business to start investing," Rajan said.
The government has taken a number of policy decisions since September including liberalising of the FDI norms for multi-brand retail and civil aviation sector.
Economic growth during the first half of current fiscal stood at 5.4 per cent against 7.3 per cent during the corresponding period of previous year.
The economic growth slowed to a nine year low of 6.5 per cent in 2011-12 and this year, too, the GDP growth, as per RBI's estimates, is likely to be 5.8 per cent. In the three years preceding the 2008 global economic crisis,
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