PM panel pegs growth at 6.5 pc

It, however, warned that a further negative shock to global financial system and global inflation could threaten growth in Indian economy. Presenting the Economic Outlook for 2009-10 after submitting it to Prime Minister Manmohan Singh, Chairman C Rangarajan told reporters that because of impact of drought, country’s farm output would post negative growth of 2 per cent.

The food grains production is estimated to be around 223 million tonne, compared to 234 mt of 2008-09.  Unlike agriculture, industry (including construction) will post a positive growth of 8.2 per cent as against 3.9 per cent of 2008-09. Growth in services, however, will come down from 9.7 per cent in 2008-09 to 8.2 per cent  this fiscal.

 The panel said inflation, which is hovering around one per cent, may firm up to 6 per cent by the end of the current fiscal.

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