The sagging economy will see a turnaround this fiscal on the back of accelerating industrial production, improvement in global conditions and likelihood of good monsoon, the Planning Commission said today.
"All around the world the focus right now is, is (the year) 2013-14 a turnaround period? I think all the evidence we have for India suggests that for us it is a turnaround period", Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here.
Ahluwalia was responding to a question about economic growth prospects in view of accelerated industrial production to 2.5 per cent in March, softening of inflation, improved global conditions and likelihood of good Monsoon this fiscal.
The Central Statistical Organisation has pegged Indian economic growth at 5 per cent in 2012-13 in its advance states. The government hopes of registering GDP growth rate ranging between 6.1-6.7 per cent in 2013-14.
The recently released industrial output data for March revealed that there is acceleration in production. The factory output grew by 2.5 per cent in March this year.
Meanwhile, the inflation measured in terms of Wholesale Price Index (WPI) fell to 3.5-year low of 4.89 per cent in April compared to 5.96 per cent in March this year and 7.50 per cent in April, 2012.
The retail inflation, as measured by consumer price index, also came down to single digit at 9.39 per cent in April after many months, indicating that inflationary expectation is on declining trend.
Besides, India Meteorological Department has forecast that there would be normal rainfall (this year) at 98 per cent of the long period average (LPA) of 89 cm during the monsoon.
Photograph: B Mathur/Reuters
Will the real inflation rate stand up please?
Markets end tad higher amid volatility
Chidambaram hints at providing special status to Bihar
Why reverting to 8% growth seems a DISTANT DREAM
India seeks PRECISION in monsoon forecasting by 2017