Government will revise growth target, says Rangarajan
12 Sep 2011
The government is expected to revise GDP growth projections for the economy for the current fiscal in the wake of the slump in July factory output, which plunged to 3.3 per cent, chairman of prime minister's economic advisory council, C Rangarajan, said today.
In the Economic Outlook for the current fiscal, the PMEAC had projected industry to grow 7.1 per cent against the IIP growth of 7.8 per cent in 2010-11.
Rangarajan, however, hoped that industry would put up a better show in the second half of the year.
"As regards the estimate of industrial production for the year as a whole, we will have to revisit the area after one or two months," Rangarajan said, after release of the Index of Industrial Production (IIP).
"If the industrial production does better in the second half, then the overall growth rate may be higher. I will say that we will have to revisit the area after one or two months," he added.
He expected agriculture and the service sectors to perform better, still driving overall economic growth upwards.
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