'Economy to grow at 5.5% in 2012-13'

Indian economy would grow at a rate between five and 5.5 per cent in the current financial year and could expand by seven per cent in 2013-14, said Plan panel Deputy Chairman Montek Singh Ahluwalia. His comments came after the Central Statistics Office projected five per cent economic growth this financial year in its advance estimates released earlier this month.

Economic growth in 2011-12 slipped to 6.2 per cent from 9.3 per cent a year ago mainly on account of global factors and subdued investor sentiments. Gross domestic product had grown 5.5 per cent in the April-June quarter and further declined to 5.3 per cent in the September quarter.

The recent industrial production data which reflects the health of mainly the manufacturing sector, has also portrayed a dismal picture. Manufacturing constitutes almost 75 per cent of the IIP.

The factory output measured in terms of Index of Industrial Production for December, 2012, has contracted 0.6 per cent for second straight month. IIP declined 0.8 per cent in November 2012.