India’s GDP growth seen slowing to 5.7-5.9 per cent in 2012-13

The government expects the Indian economy to expand at an annual rate of 5.7 per cent to 5.9 per cent during the current financial year ending 31 March 2013, down from the budget projections of around 7.6 per cent, even as the current inflationary trend showed some signs of easing towards the end of the fiscal.

This is more or less similar to the Reserve Bank of India's estimate of a 5.8-per cent growth in the country's gross domestic product (GDP) in 2012-13.

The earlier Economic Survey had pegged the country's GDP growth rate at 7.6 per cent for the 2012-13 fiscal.

However, the expected slowing of inflation during the January-March 2013 quarter could give more leeway for RBI to ease its monetary stance, setting the stage for a revival of credit flows to business and industry.

Presenting its mid-year economic review today, the finance ministry said inflation in the country is likely to moderate to around 6.8-7.00 per cent at the end of March.

In the emerging scenario, ''it should be possible for the economy to improve the overall growth rate of GDP to around 5.7 per cent to 5.9 per cent for the year 2012-13", according to the Mid-Year Economic Analysis tabled in Parliament.