Montek pegs GDP growth at 6.5%

The Planning Commission expects the economy to grow by 6.5 per cent during the current fiscal, and inflation of food articles to moderate in the coming months with the arrival of rabi crops.

"... 6.5 per cent (growth rate for 2009-10) is my forecast," Planning Commission Deputy Chairman told reporters at the Economic Editors' Conference in New Delhi on Wednesday.

Ahluwalia's assessment of economic growth is marginally higher than 6.3 per cent projected by the Commission earlier.

Prime Minister's Economic Advisory Council too had projected 6.5 per cent economic expansion in this fiscal.

Having recorded growth rate of nine per cent during the three consecutive years, the economic growth rate decelerated to 6.7 per cent 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 per cent, the food prices have continued to rule high mainly on account of the poor monsoon and drought in several parts of the country.