GDP growth @ 4.9%

India’s economy is estimated to grow 4.9% in 2013-14, a shade lower than the government’s earlier projection but marginally above 4.5% clocked last year, highlighting the pain in Asia’s third-largest economy.
Overall expansion during the current fiscal year has been hurt by contraction in the key mining and manufacturing sectors, putting more pressure on the poll bound government to unveil measures in the vote- on-account later this month to revive growth.
The government and the Reserve Bank of India have repeatedly said that growth would be in the range of 5-5.5% although the central bank has been more conservative on growth due to stubborn inflationary pressures.
The UPA coalition has faced sharp criticism over its handling of the economy. Critics have slammed the government for stalling growth, while stubborn prices have impacted household budgets.
This will also put pressure on finance minister P Chidambaram to unveil steps in the vote on account on February 17 to boost some sectors through incentives and tax breaks. But, a tight fiscal situation may force the government to go slow, leaving the job of reviving the economy on the new government, which is expected to assume power after the national elections around May-June.
The farm sector, which accounts for nearly 14% of the economy (GDP) is estimated to grow 4.6% in 2013-14, sharply higher from the previous year’s 1.4% growth. But, a deep slowdown in the manufacturing and mining sectors continued, prompted calls for measures to reverse the trend. This is the first time since 1991-92 that the manufacturing sector has contracted, pointing to the stress confronting the sector. Economists said the downward revision in the growth numbers for 2012-13 helped show a better picture for the current year.
India Inc stepped up calls for interest rate cuts and urgent administrative action to revive growth.