Indian government forecasts 5.5% economic growth

Indian economy would grow at a rate of between 5 and 5.5% in current fiscal and could expand by 7% in 2013-14, said Planning Commission Deputy Chairman Montek Singh Ahluwalia. “The Gross Domestic Produce (GDP) growth rate would be somewhere between 5 and 5.5%. If everything worked perfectly, I would not rule out seven% next year (2013-14)”, Ahluwalia told the Press Trust of India (PTI) Sunday. His comments came after the Central Statistical Organisation (CSO) has projected 5% economic growth this fiscal in its advance estimates released earlier this month. In best case scenario the growth could climb to “5.5%” this fiscal, he said, adding “if there was strength in the recovery then many more signs would have been evident”. Economic growth in 2011-12 slipped to 6.2% from 9.3% a year ago mainly on account of global factors and subdued investor sentiments. GDP of the country has grown by 5.5% in April-June quarter and further declined to 5.3% in July-September quarter, PTI said.