7.6 pc growth rate projected for fiscal

Tribune News Service

New Delhi, February 8

The economy is projected to record a five-year high growth rate of 7.6 per cent in 2015-16 with consumption supporting growth and manufacturing being a surprise performer.

According to the Central Statistics Office (CSO), the Gross Domestic Product (GDP) is estimated at 7.3 per cent in the October-December quarter of this fiscal.

The CSO has also revised upwards the GDP growth estimates for April-June and July-September quarters to 7.6 per cent and 7.7 per cent from the earlier calculation of 7 per cent and 7.4 per cent, respectively.

At 7.6 per cent, India would be growing at the fastest pace in the last five years. The previous high was recorded at 8.9 per cent in 2010-11. India’s growth would also be faster than China and it remains among the fastest-growing large economies.

Industry body Assocham today said that estimates of gross domestic product (GDP) indicate ‘moderate development’ in the economy as compared to the previous quarter of the same year.

“The government should also take proactive policy measures in the upcoming budget, specifically focused on agriculture, infrastructure sector, steel, banking and financial sectors among others to revive the economy,” said Sunil Kanoria, president of Assocham.

Industry body Ficci said the GDP estimates indicate that the economy is firmly holding on to the recovery course.

The chamber said that reform measures taken over the past 18 months have put the economy on the growth trajectory. The improvement expected in the agriculture and manufacturing sectors in the current fiscal is encouraging.

“We look forward to the Union Budget giving a positive direction to the economy. The focus should clearly be on introducing measures to further boost domestic investments and demand,” A Didar Singh, secretary general, FICCI added.

Sectors like agriculture, electricity, gas and other utility services, financial real estate and professional services have shown moderate growth.