FM pegs economic growth at 5 pc for FY'14

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SME Times News Bureau | 03 Dec, 2013
The Indian economy is on the path of recovery. Growth will accelerate in the coming quarter and is expected to be around five percent for the current financial year, Finance Minister P. Chidambaram said Monday.

The country's gross domestic product (GDP) growth rose to 4.8 percent in the quarter ended September as compared to 4.4 percent in the previous quarter, according to latest data from the Central Statistics Office (CSO).

Average growth in the first two quarters of the current financial year stood at 4.6 percent.

Addressing a press conference here, Chidambaram said the economic growth performance in the second quarter of the current financial year was in line with the government's expectation and was likely to improve significantly in the second half of the year.

"The second quarter GDP growth rate indicates that the economy may be recovering and is on a growth trajectory again," the finance minister said.

Apart from the second quarter GDP growth numbers, Chidambaram also based his optimism on recovery in exports and a very good improvement in current account deficit situation.

"With the recent improvements in some important sectors like manufacturing, better performance of exports and with the measures taken by the government, the economy can be expected to show further improvement.

"We expect the growth for the financial year 2013-14 to be 5.0 percent," the finance ministry said in a statement.