New Delhi: Prime Minister's Economic Advisory Council (PMEAC)
anticipates the economy to grow by 6.4 percent as against 7.7 percent in the year ahead. In the first quarter, the economy grew at 6.1 percent as compared to a
projected growth of 6.2 percent. Following strong industrial production and service
sector activities, the growth in the second quarter is likely to increase. A downbeat
in the agricultural production is anticipated due to the poor monsoon. In 2009,
the southwest monsoon was 23 percent below the normal level. The demand in the
rural areas may also deteriorate due to monsoon vagaries. Kotak Mahindra Bank's
chief economist Indranil Pan said, "Weak consumption expenditure and slower capex
are likely to dampen Q2 GDP growth. Poor credit off take may pull services sector
growth lower."
