India to hit 6% growth next fiscal, better H2 in FY14: Montek

Published: 29th November 2013 03:20 PM  |   Last Updated: 29th November 2013 03:20 PM   |  A+A-


Enthused by the improvements expected in macro economic situation soon, Planning Commission Deputy Chairman Montek Singh Ahluwalia today said India can achieve 6 per cent economic growth next fiscal and that the second half of this fiscal could be better than the first.

"I would hope that if my judgement, that the second half of the current (fiscal) year shows more than 5 per cent, then it is not unreasonable to expect more than 6 per cent in the next financial year," he told CNBC-TV18.

Ahluwalia's comments came ahead of the release of second quarter (July-September) Gross Domestic Product (GDP)  data by the government. India's GDP grew at a decade low of 5 per cent last fiscal.

There seems to be persistent sluggishness in the economy so far as GDP growth slowed down to 4.4 per cent in April-June quarter from 4.8 per cent in January-March quarter this year. The economy grew at 5.4 per cent in corresponding quarter (April-June) last fiscal.

Ahluwalia said he expected all political uncertainty, that is inevitably associated with the general election, will be over (by next year) and  this would give enough legislative time for many held-up moves.

Explaining further, he said, ".. for example one of the biggest things that would impact the economy and the investment climate is the goods and services tax (GST)."

"... I am hoping that if early next year, after the general election, the GST is put through even if it is implemented several months later, the positive impact on expectations will be very high. So, going for 6 plus in fiscal year 2014-15 is a perfectly reasonable thing to do and then go to 7 per cent plus and then to 8 per cent is not unreasonable," he added.

Ahluwalia's assumption of improving macro economic scenario is based on the impact of good monsoon and expected improvement in current account and fiscal deficit.

Besides, he foresees the rupee pricing helping exporters and making domestic producers more competitive.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp