Rangarajan also said he expects the economic growth to pick up to 5.5-6 percent in the fiscal year that begins on April 1.

Contracting industrial output and an investment slowdown dragged India's economic growth to a worse-than-expected 4.7 percent in the three months to December, making it tougher for the economy to hit the government's growth forecast of 4.9 percent in the fiscal year that ends in March.

According to advanced estimates released recently by the Central Statistics Office, GDP growth for 2013-14 is estimated at 4.9 percent, compared to 4.5 percent in 2012-13.

Recently, the International Monetary Fund (IMF) had pegged India’s economic growth at 4.6 percent in 2013-14. Since the economy had grown 4.6 percent in the first half, it means that IMF expects economic growth to be 4.6 percent in the second half too. In the first nine months, the economy had risen 4.6 percent, tad higher than 4.5 percent in the corresponding period of the previous financial year.


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