"Growth has slowed in recent quarters. I expect growth in the first quarter of 2013-14 to be relatively flat, but as the effects of good monsoon kicks in, I expect it to pick up," he said while making a statement on the state of the economy in the Parliament. (Agencies)
The economic growth slowed to a decade low of 5 percent in the 2012-13 fiscal. The government expects the economy to growth at around 6 percent in the current fiscal.
The GDP figures for first quarter are scheduled to be released in the evening on Friday.
The growth in the first quarter of last fiscal was at 5.5 percent. In order to boost growth, the government has taken a number of initiatives including setting up of Cabinet Committee on Investments (CCI) for reviving stalled projects. Since January 1, the CCI has cleared projects worth over Rs three lakh crore.
"The decisions of the CCI in reviving stalled projects will start bearing fruit in the second half of the year. Exports are also starting to look up as the rest of the world is improving its growth. So I believe, growth will pick up in the second half of fiscal year barring extreme unforeseen eventualities," he said.
Listing out the growth friendly measures -- fuel subsidy reform, liberalizing FDI norms in various sectors, and resolution of some tax issues of concerns to industry—taken by government in last six months, Singh said the effects of these will come into play over the year resulting in higher growth, particularly in manufacturing.
After growing at over 8 percent for two consecutive years, the growth slowed to 6.2 percent in 2011-12 and further to 5 percent last year on account of poor performance of farm, manufacturing and mining sectors.
"Growth has slowed in recent quarters. I expect growth in the first quarter of 2013-14 to be relatively flat, but as the effects of good monsoon kicks in, I expect it to pick up," he said while making a statement on the state of the economy in the Parliament.