Reserve Bank of India (RBI) Projects India’s GDP to Grow at 5.7% for Current Financial Year.
Reserve Bank of India (RBI) on May 3, 2013 pegged the Gross Domestic Product (GDP) growth rate for the current fiscal at 5.7 per cent, significantly lower than the Finance Ministry’s forecast of 6.1 to 6.7 per cent.
“The Reserve Bank’s baseline projection of GDP growth for 2013-14 is 5.7 per cent… The bank’s current assessment is that activity will remain subdued during the first half of this year with a modest pick-up in the second half, subject to appropriate conditions ensuing,” RBI said in its Annual Monetary Policy review for 2013-14.
The RBI’s current fiscal year’s growth estimate of 5.7 per cent is much lower than the Finance Ministry’s growth projection of 6.1-6.7 per cent and Prime Minister’s Economic Advisory Council’s growth projection of 6.4 per cent for 2013-14.
It is also lower than the World Bank’s growth projection, which predicted Indian economy to grow by 6.1 per cent in 2013-14 on account of robust domestic demand, strong savings and investment rate.