PMEAC pegs economic growth rate at 6.4% for 2013-14

PMEAC pegs economic growth rate at 6.4% for 2013-14The Indian economy will grow at estimated 6.4 per cent during the current financial year, according to the Prime Minister's Economic Advisory Council (PMEAC).

Headed by former RBI Governor C Rangarajan, the top advisory body said that the economic slowdown had already reached the bottom, and that the economy would continue to grow at a faster rate.

The PMEAC's growth estimate is fairly in line with the finance ministry's forecast of 6.1 per cent to 6.7 per cent growth in the current financial year.

The economic growth is estimated to have slipped to a decade low of 5 per cent in last financial year, mainly because of global economic slump, high rates of interest and policy delays.

The advisory body urged that government to accelerate the process of economic reforms to boost growth.

Speaking on the topic, Mr. Rangarajan said, "The very high level of investment rate that we have even now gives us the hope that if we take action for speedy implementation of projects we can achieve the higher rate of growth quickly even in the short term."

Mr. Rangarajan also stressed on the need to control the current account deficit (CAD). He estimated CAD from 5.1 per cent of GDP in 2012-13 to 4.7 per cent in 2013-14.