The Economic Outlook 2013-14 has projected economy to grow at 5.3% in 2013-14. Agriculture is projected to grow at 4.8% in 2013-14 as against 1.9% in 2012-13. The early and good monsoon had a huge positive impact on sowing activity. The reservoir position in the week ending August 29, 2013, was 29 per cent better than the average of the last 10 years. Thus both kharif and rabi crops are expected to be good.
Industry (including manufacturing, mining and quarrying, electricity, gas, water supply and construction) is projected to grow at 2.7% in 2013-14 as against 2.1% in 2012-13. Manufacturing sector is projected to grow at 1.5% in 2013-14 as against 1 % in 2012-13.
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Services is projected to grow at 6.6%in 2013-14 as against 7.1% in 2012-13.
The Council expects the growth rate in 2013-14 to be higher than it was in 2012-13. Apart from the substantially improved performance of agriculture, the other sectors of the economy will also perform better in the second half of 2013-14 for three reasons:
o The full impact of various measures taken over the last six months will be reflected later in this year
o Strong emphasis is being laid on improving the performance of key infrastructure sectors that lie in the public domain such as coal, power, roads and railways
o Continuous efforts are being made to remove the bottlenecks in the implementation of projects
Structural Factors
Domestic savings rate decline of 6% between 2007-08 and 2011-12 almost entirely on account of a decline of 3.7% in public sector savings and 2.2% in private corporate savings.
Decline in net financial savings of households to 8 per cent in 2011-12 from 11-12 per cent in years prior to 2010-11.
Investment rate projected at 34.7% of GDP in 2013-14 as against the estimated 35% in 2012-13.
Domestic savings rate projected at 31% of GDP as against the estimated 30.2 % of GDP 2012-13.