Press Esc to close
Friday 06 May 2016
News updated at 1:24 AM IST
Weather
Max: 35.6°C
Min : 25.5°C
In Bengaluru
Sunny day

RBI lowers GDP growth projection for current fiscal to 5.5 pc

Mumbai, Jul 30, 2013, (PTI):
PTI file photo.

The Reserve Bank today lowered the growth projection for the current fiscal to 5.5 per cent from its earlier estimate of 5.7 per cent and asked the government to undertake policy measures to improve investment climate.

"While the onset of the monsoon and its spread have been robust, the persisting weakness in industrial activity has heightened the risks to growth," RBI Governor D Subbarao said while announcing the first quarter policy review.

The RBI in its annual policy in May had projected the economy would grow at 5.7 per cent. The government in February estimated 6.5 per cent growth for 2013-14.

Global growth, Subbarao said, continues to remain tepid, which in turn has affected India's trade and manufacturing activities. He further said the investment climate remains weak and risk aversion continues to stall investment plans.

"Without policy efforts to address the deterioration in productivity and competitiveness, the pressures from wage increases and upward revisions in administered prices could weaken growth even further and exacerbate inflation pressures," Subbarao said.

He said the outlook for investment is inhibited by cost and time overruns, high leverage, deteriorating cash flows, erosion of asset quality and muted credit confidence.

The country's economic growth hit a decade low of 5 per cent in the last fiscal on account of poor performance in the farm, manufacturing and mining sectors.

Earlier this month, the Asian Development Bank lowered its growth projection for India to 5.8 per cent in calendar 2013 from 6 per cent estimated earlier, citing the slow progress of economic reforms.


Go to Top

Photo Gallery
Women voters wait in a queue to cast their votes at a polling station during the final phase of...

Women voters wait in a queue to cast their votes at a polling station during the final phase of...

Royal Challengers Bangalore players Chris Gayle, Travis Head and Stuart Binny are seen with a fan...

Royal Challengers Bangalore players Chris Gayle, Travis Head and Stuart Binny are seen with a fan...

Boys jump into a step well, built inside the shrine of Sufi Saint Nizamuddin Auliya, to cool off...

Boys jump into a step well, built inside the shrine of Sufi Saint Nizamuddin Auliya, to cool off...

A woman collects drinking water after climbing down a dried up well at Bhakrecha Pada in Thane...

A woman collects drinking water after climbing down a dried up well at Bhakrecha Pada in Thane...

A man offers water to a Peacock at a Zoo in Surat on Thursday...

A man offers water to a Peacock at a Zoo in Surat on Thursday...

Parineeti Chopra and Kunal Kapoor during a promotional event in New Delhi on Thursday...

Parineeti Chopra and Kunal Kapoor during a promotional event in New Delhi on Thursday...

Russian Air Force Su-25 jets fly over Moscow's Kremlin during a general rehearsal for the Victory...

Russian Air Force Su-25 jets fly over Moscow's Kremlin during a general rehearsal for the Victory...

Kashmiri Muslim women react upon seeing a relic believed to be hair from the beard of Prophet...

Kashmiri Muslim women react upon seeing a relic believed to be hair from the beard of Prophet...

Holocaust survivor Robert Tomashof and his daughter Rutti Tomashof light a torch during the...

Holocaust survivor Robert Tomashof and his daughter Rutti Tomashof light a torch during the...

A man prepares food inside a community kitchen at a Hindu temple on the banks of the river Ganga...

A man prepares food inside a community kitchen at a Hindu temple on the banks of the river Ganga...