Govt not optimistic about H2 growth

 Even after a buoyant industrial production number in the month of October, the government is not very optimistic about an encouraging economic growth in the remaining period of the fiscal and wants to watch some more data to suggest the growth is strengthening.

“The economic growth is stabilising but we have to wait and see when it starts strengthening,” Chief Economic Advisor Raguram Rajan said on Thursday.

To a question on whether a higher-than-expected IIP data released on Wednesday was any indication that GDP growth for the second half of the year will be on a higher side, he said, “we should not be overly influenced by one month number”.

India’s industrial production index rose sharply to 8.2 per cent in October as against a contraction in the previous month. But, the experts pegged the rise in number on the base-effect and also warned of contraction in November.

Rajan said that government measures were helping strengthen the economic growth even as the adverse international factors played their role. Rajan also emphsised on domestic investment propelled growth in the wake of weak economic recovery in the western worlds.

He said project clearances and project implementation on time were important to achieve a desired level of growth.

Rajan’s comments are significant in the wake of the government the second quarter (July-September) economic review expected to be tabled in Parliament next week. The review will also give a projection of the gross domestic product growth in the second half of the current fiscal.