India was expected to see a slower economic growth of 5.9 per cent in the current financial year, even as there are reasons to believe the “economy has turned the corner”, an United Nations agency report said on Thursday. It said India’s growth has been slowing down since 2011, mainly on account of “severe” monetary tightening by the Reserve Bank of India.
Projecting a GDP growth of 6.8 per cent for 2013-14, it said there are reasons to believe the economy has turned the corner.
"Firstly, in September 2012, the government signalled its determination to pursue pending economic reforms including FDI in multi-brand retail and civil aviation and the partial phasing out of fuel subsidies," it noted.
Further, the report said this year's monsoon season was not as weak as initially feared. The Indian economy has been slowing down since 2011, after clocking over 8 per cent average growth in the previous three years.
