India's economy is tipped to grow below 5 per cent in FY 2013-14, with gross domestic product estimated to expand 4.9 per cent, higher than 4.5 per cent in the previous fiscal as high interest rates, elevated inflation and policy paralysis cripples investment and spending.
The manufacturing sector is tipped to contract this fiscal amid weak demand due to tepid consumption, investment and lower government spending, the Central Statistical Office (CSO) said on Friday. The sector may shrink 0.2 per cent in FY 2013-14, compared to a growth of 1.1 per cent in the previous financial year.
India Inc. stressed on policymakers to kick-start stalled projects in the infrastructure and manufacturing sectors, remove obstacles in the mining sector to aid the revival of economic growth.
The slight pickup in the economic growth this fiscal was attributed to better than expected performance from the agriculture and allied sectors, which are tipped to expand by 4.6 per cent, up from 1.4 per cent from the previous fiscal.
Dion Global Solutions Ltd.