Growth may languish at sub-six per cent

The sluggish pace of India’s economic growth, projected to hover around 5.7 per cent this fiscal, will mount pressure on the government to implement reforms. But a moderation in inflation forecast comes as a relief to the Reserve bank of India, which is making tireless efforts to boost the sagging economy.

The Mid-Year Economic Analysis, brought out by the government on Monday, said the economy could expand by 5.7 to 5.9 per cent, falling short of the budgeted estimate of 7.6 per cent due to both domestic and global factors.

The economy should grow at close to six per cent in the next two quarters to achieve the 5.9 per cent growth figure, the probability of which is very low because of the weak external environment and the tight monetary and regulatory controls back home, analysts said.