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India Ratings pegs GDP at 4.9%; projects improvement in FY15

New Delhi: India's growth rate is expected to slip to 4.9 per cent in the current fiscal but will improve significantly to 5.6 per cent in 2014-15, India Ratings said today. "Our expectation for improved growth
India TV News Desk January 14, 2014 17:25 IST
India TV News Desk
New Delhi: India's growth rate is expected to slip to 4.9 per cent in the current fiscal but will improve significantly to 5.6 per cent in 2014-15, India Ratings said today.
 
"Our expectation for improved growth in FY'15 is based on a partial recovery in the industrial and services sector growth, and an uptick in investment due to project clearances by the Cabinet Committee on Investment (CCI)," said India Ratings, a Fitch group company.

India's growth rate plummeted to decade's low level of 5 per cent in 2012-13.

The economic outlook report projected growth of 5.6 per cent with farm sector expansion at 3 per cent, industry 4.1 per cent and services 6.9 per cent in 2014-15 fiscal.

Outlook for the Indian economy is looking significantly better now than it did in mid-2013 when the country was struggling with current account and fiscal deficit, falling rupee and high and stubborn inflation, it said.

"Better-than-expected monsoons, rising exports, swift policy as well as project clearance actions by the government and deft currency management by the RBI have improved business sentiments," the report said.