Economy likely to grow by 6.5%: Montek
New Delhi: The Planning Commission expects
the economy to grow by 6.5 percent during the current fiscal,
and inflation of food articles to moderate in the coming
months with the arrival of rabi crops.
"...6.5 percent (growth rate for 2009-10) is my
forecast," Planning Commission Deputy Chairman told reporters
on Wednesday at the Economic Editors' Conference here.
Ahluwalia's assessment of economic growth is marginally
higher than 6.3 percent projected by the Commission earlier.
Prime Minister's Economic Advisory Council (PMEAC) too had
projected 6.5 percent economic expansion in this fiscal.
Having recorded growth rate of nine percent during the
three consecutive years, the economic growth rate decelerated
to 6.7 percent during 2008-09 on account of the impact of the
global financial meltdown on the country.
Expressing concern over inflation, especially of the food
articles, Ahluwalia said the prices have started coming down
and would decline further in the next few months with the
arrival of rabi crop.
"We are concerned about inflation...with good rabi, food
price inflation will come down...In the next few months you
will see decline in inflation," he said.
Although the inflation is hovering around one percent,
the food prices have continued to rule high mainly on account
of the poor monsoon and drought in several parts of the
country.
Bureau Report