Growth to slow in coming quarters, says Ahluwalia

Posted By: Staff
Subscribe to Oneindia News

New Delhi, Sep 1(ANI): Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Tuesday that country's economic growth in the coming two quarters will be lower than April-June.

The economy grew 6.1 percent in the June quarter, roughly in line with forecasts, but a poor monsoon threatens to erode growth later in the year even as it drives prices higher.

"I think the growth rate will be worst in the second quarter and may be even in the third quarter because that's when the impact of drought will be more evident, but we expect that in the fourth quarter, which is January to March 2010, there will be stronger recovery leaving an average growth rate of around 6.3 percent," Ahluwalia said.

Ahluwalia added that if the monsoon revives in September it will help the rabi crop.

"A lot depends on September rains still, in the sense that good rains in September may not be able to save the kharif crop in areas where there has been a lot damage but can make a big difference to rabi," he added.

The Planning Commission's meeting comes a day after the country's top economic minds agreed that India's economy is looking up after the Gross Domestic Product (GDP) showed a 6.1 per cent growth.

India witnessed a 7.8 percent economic expansion during the corresponding period of the last fiscal.

According to sources, mining and electricity in industrial sector, and financing among services sector posted higher growth of 7.9, 6.2 and 8.1 percent, respectively, in the first quarter of this fiscal, against 4.6, 2.7 and 6.9 percent a year ago.

Infrastructure development and community services also managed to register a growth of 7.1 and 6.8 percent against 8.4 and 8.2 percent, in the last fiscal.

However, agriculture and manufacturing industry expanded at a slower rate of 2.4 and 3.4 percent respectively. (ANI)

Please Wait while comments are loading...