Commenting on Indian economy's dismal performance in first quarter, Planning Commission Deputy Chairman Montek Singh Ahluwalia speculates that India will have better growth rate next fiscal. He admitted that the slowdown was not unexpected, and a growth of almost eight percent is a healthy and impressive. He said that there would be revival of Indian economy in next fiscal.

 

Incidentally, in similar estimation, India's central bank has re-projected growth rate at 8 percent, from 8.5%. The RBI cited the reasons ranging from global to domestic developments for slow growth. Deputy Chairman expected that reforms would be able to give a big push forward. According to him public-private partnerships (PPP) in infrastructure projects, covering roads, ports, airports and energy will boost Indian economy.

 

Informing about low growth rate in manufacturing sector, Ahluwalia said that the tight monetary policy of the Reserve Bank of India (RBI), in a bid to curb price rise, was one of the main reasons for the dip in manufacturing growth 5.6 percent from 10.9 percent in the first quarter of last fiscal. He argued for swift implementation of the projects to retain the growth momentum.