Economy to grow at 6.4% in 2013-14, inflation to remain at 6%: Rangarajan - NDTV

NDTV | Updated On: April 23, 2013 11:26 (IST) The Prime Minister's Economic Advisory Council today presented an economic review for 2012-13 and gave estimates for financial year 2013-14. Dr. C. Rangarajan, chairman of the PMEAC, addressed the media later. Here are the highlights: Advance estimates put 2012-13 growth rate at 5 per cent. There has been no change in that We have a feeling this could be revised upwards Growth forecast for 2013-14 stands at 6.4 per cent We assume a normal monsoon this year Manufacturing growth to be at 4 per cent for FY14 Policy actions seen on FDI and clearances of projects This could push up manufacturing growth to 4 per cent in FY14 Focused attention on roads, power and coal will be a stimulant for the private sector Europe got in a double-dip recession US showing signs of stabilization Growth situation not very encouraging due to these factors Investment rate high enough to give higher growth projections Projects are not being cleared fast enough Can get higher rate of growth by clearing projects faster FY13 savings rate around 30.8 per cent Household savings, private sector savings both down Household savings down due to inflation Manufacturing sector growth for FY13 likely to be revised upwards Some indication that manufacturing sector was doing better than what's reflected in IIP Going forward the current account deficit will come down to 4.7 per cent of the GDP in FY14 Pegging export growth in FY13-14 to see growth of 9 per cent Import growth has been pegged at 8 per cent Gold, coal and oil are the three major reasons of concern on current account deficit Coal imports have jumped over 40 per cent in the last few years FY13 gold imports are likely to fall $56 billion worth of gold imported so far in FY13 High inflation makes gold a good hedge Gold is also a hedge against the exchange rate Gold imports will fall in value after 25 per cent correction in gold prices $45 billion worth of gold imports likely in FY14 $ 110 billion of net oil imports in FY13 $ 125 billion of oil imports in FY14 Diesel price correction to have some dampening effect on oil imports Oil import to go up more due to higher volume of import rather than prices For Profit Update, via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNF-4-WpNKHVV1YctUxPX4NwXBdaIg&url=http://profit.ndtv.com/news/economy/article-economy-to-grow-at-6-4-per-cent-in-2013-14-rangarajan-321276

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