However, 6.7 per cent growth rate is the most optimistic of the recent projections as different think-tanks have forecast it to be as low as 5.5 per cent.
The government had in Budget 2012-13 estimated a growth rate of 7.6 per cent (+/- 0.25 per cent).
PMEAC Chairman C Rangarajan, while releasing the Economic Outlook for 2012-13, today said the economy in the current fiscal was expected to grow at 6.7 per cent.
The projection is much lower than the PMEAC's forecast in February when it said that the economy would grow by a healthy 7.5-8 per cent in 2012-13.
The lower projection is mainly on account of the impact of deficient monsoon on agriculture and worsening global economic situation. Till August 12, there has been a rainfall deficit of 16 per cent.
Taking into account these concerns, RBI had earlier lowered the GDP forecast for the current fiscal to 6.5 per cent, against 7.3 per cent projected in April.
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"We have the potential to achieve the higher growth rate. Saving and investment rate has come down. If we can increase it to 35 per cent then we can bring back nine per cent growth," Rangarajan said, adding that the situation in Europe is a matter of concern.
The economic growth, as per estimates by CSO, in 2011-12 fell to 9-year low of 6.5 per cent. Rangarajan, however, said that the growth rate could finally turn out to be a little higher than 6.5 per cent.