India economic growth rate for 2012-13 will slump to 5%: government
This estimate by CSO is drastically lower than what has been projected thus far by the government and RBI.
"The growth in GDP (Gross Domestic Product) during 2012-13 is estimated at 5 per cent as compared to a growth rate of 6.2 per cent in 2011-12," according to the Advanced Estimates released today by the Central Statistical Organisation (CSO).
In 2002-03, the GDP had grown at 4 per cent. Since then the Indian economy has been expanding at over 6 per cent, the highest rate being 9.6 per cent in 2006-07.
CSO's advance estimate lowered the growth in agriculture and allied activities to 1.8 per cent in 2012-13, compared to 3.6 per cent 2011-12.
Manufacturing growth is also expected to drop to 1.9 per cent in this fiscal, from 2.7 per cent last year.
The CSO's GDP growth projection is a lower than the 5.5 per cent forecast made by the Reserve Bank in its quarterly monetary policy review last week.
In its mid-year Economic Review, the government had also estimated growth ranging from 5.7-5.9 per cent. The current estimate is a sharply lower than the 7.6 per cent growth projection for 2012-13 made by government in Budget.
The latest estimate of 5 per cent for the entire fiscal means that the pace of economic expansion has slowed sharply in the second half of 2012-13, given