PMAC projects India’s 2012-13 GDP at 6.7 per cent

The Prime Minister's Economic Advisory Council (PMAC) has pegged the country's economic growth for the current financial year at 6.7 per cent, despite failing monsoon and a general slowdown in industrial activity across the country.

India's gross economic product (GDP) is estimated to grow at 6.7 per cent in the current financial year (2012-13), according to the 'Economic Outlook 2012-13' released by PMAC.

The report has, however, projected farm sector GDP to grow at a slow 0.5 per cent in 2012-13, pulled down by a weak monsoon and low reservoir storage position, against the 2.8 per cent year-on-year growth last financial year.

Deficient monsoon is also likely to have an adverse impact on the prices of primary food items, especially on those where the ability of government stocks to play a moderating role is not there. Inflation rate is expected to be within the range of 6.5 to 7.0 per cent at the end of 2012-13, according to the report.

The PMAC has projected manufacturing sector growth at 4.5 per cent. This has been due mainly to improvement in sectors like electricity, automotive, steel and cement during the April-June quarter. A low base will also help manufacturing output growth to show improved performance in the second half of the financial year, according to the report.

Mining output is expected to grow at 4.4 per cent for the whole year due to growth in the coal and lignite sector, and some recovery in iron ore.