Thursday, February 7, 2013

Still hoping for the best


The preliminary data released by the Central Statistics Office (CSO) on 7th February, drastically cut the gross domestic product (GDP) growth forecast to 5% for the fiscal year ending 31st March 2013, compared to 6.2% in the previous year. This will be the worst performance of the Indian economy since 2002-03 when the growth was recorded at 4%.

Finance Minister P. Chidambaram said CSO's growth estimate, no doubt, is below what we in the finance ministry had expected it to be. The government would take more appropriate steps to revive economic growth even as the statistical office lowered the GDP growth forecast to 5%. This projection is based on extrapolation of numbers till November 2012. Since then, leading indicators have turned up, suggesting some hope that we will end the year on a better note. We are keeping a watch on the situation. We have taken and will continue to take appropriate measures to revive growth.

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