The Telegraph
Saturday , March 15 , 2014
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Rangarajan sees growth at 5.5%

C. Rangarajan in New Delhi on Friday. (PTI)

New Delhi, March 14: The economy is expected to grow 5.5 per cent in the fourth quarter of the current fiscal on higher farm output and a pick-up in manufacturing, C. Rangarajan, chairman of the Prime Minister’s Economic Advisory Council (PMEAC), today said.

“I see some greenshoots in the Indian economy. In order to achieve a growth rate of 4.9 per cent for year as a whole, the fourth-quarter growth rate will have to be 5.5 per cent. The weight of fourth quarter is greater than the other quarters. So, it’s not 5.7 per cent but actually it is 5.5 per cent,” Rangarajan said at an event organised by the CII.

“I think it is achievable because there will be substantial improvement of growth rate in agriculture in the fourth quarter. As far as manufacturing is concerned, perhaps there will be a pick-up in February and March,” he added.

Meanwhile, Fitch Ratings in a report said the economy might grow 4.7 per cent in the current financial year, lower than the 4.9 per cent estimated by the Central Statistics Office. The global ratings agency expects the economy to pick up in the next two financial years.