Worst is over, Q4 growth to be much better: Nath

NEW DELHI: The worst is over for the Indian economy which has started responding to the government's different stimulus packages and country's growth would pick up momentum in the last two months of this fiscal, Commerce and Industry Minister Kamal Nath said here.

"I believe the worst is over," Nath said adding that the last two months of the current fiscal would be much better in terms of growth.

The Indian economy grew by 5.3 per cent in the third quarter, a low of over five years, against a whopping 8.9 per cent a year ago, as agriculture and manufacturing output contracted.

Farm sector contracted by 2.2 per cent while manufacturing shrank by 0.2 per cent.

The April-December growth works out to 6.9 per cent against 7.1 per cent shown in the government estimates.

Nath said the government is aware of the sluggish growth in the economy during the October-December quarter and that is why it announced the stimulus package.

He said the government took steps to address the issue of sluggish growth in the economy more evident in the third quarter.