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“We are confident that the growth will bounce back with our efforts to 7 to 8 per cent,” said Manmohan Singh, the Indian prime minister.
A new report by Moody’s Analytics has also reiterated that the worst may be over for the Indian economy.
It sees economic growth at around 7 per cent from 2014 onwards in its India Outlook report titled “The Worst May Be Over”.
“The December quarter was likely the bottom of the economic cycle, and we anticipate a steady acceleration in GDP growth across the coming year.
“Our forecast from 2014 onwards is for economic growth of around 7 per cent, which is India’s new rate of trend growth,” the report read.
Findings of the think tank, Moody’s Analytics, a division of the global ratings major, endorse the optimism inherent in the growth estimates for 2013-14 at 6.1 per cent and 6.7 per cent in the economic survey.
Palaniappan Chidambaram, India’s finance minister, promised more measures to support growth in the union budget presented on February 28.
India’s economy under-performed in 2012 as external (global downturn, eurozone crisis) and domestic factors weighed on confidence and demand, the report said, adding, “these factors will be less of a drag in 2013.”
“Credit flow to the agriculture sector has increased since 2004 by nearly 500 per cent”, Singh said earlier, insisting on the government’s commitment to inclusive growth.
“The improvement in agriculture is reflected in the growth of per capita consumption in rural areas,” said the prime minister.