Economy to grow up by 6 pc in 2013-14: Rangarajan

TEZPUR: Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan today said Indian economy will grow up by 6 per cent this fiscal on account of a good monsoon.

"It can be said that the growth of the gross domestic product ( GDP) will be 6 per cent...as the monsoon is favourable, reflecting increasing public sector investment," Rangarajan said at an event in Tezpur University here.

Earlier this month, Rangarajan had said India's economic growth rate is expected to be at least 6 per cent in the 2013 -14 fiscal.

When asked about the current account account deficit, he said the demand side, which is the biggest constraint of the trade deficit like the demand of gold and petroleum products, needs to be reduced.

"Steps have been taken in this regard," Rangarajan said, without elaborating further.

Conservation of energy is essential for the economic growth of a country, he added.

The economy in 2012-13 grew at 5 per cent, a decade low. The economy grew at 4.8 per cent in the fourth quarter of FY'13.

The Reserve Bank has projected the economy to grow at 5.7 per cent in the current fiscal, while the Finance Ministry has forecast 6.1-6.7 per cent growth.