Economy to grow up by 6 per cent in fiscal year 2013-14: Rangarajan

Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan said on Monday that Indian economy will grow up by 6 per cent this fiscal year on account of a good monsoon.

"It can be said that the growth of the gross domestic product (GDP) will be 6 per cent...as the monsoon is favourable, reflecting increasing public sector investment," Mr Rangarajan said at a Tezpur University event in Assam.

Earlier this month, Mr Rangarajan had said India's economic growth rate is expected to be at least 6 per cent in fiscal year 2013 -14.

When asked about the current account deficit, he said the demand side - which is the biggest constraint of the trade deficit like demand of gold and petroleum products - needs to be reduced.

"Steps have been taken in this regard," he said, without elaborating further.

Conservation of energy is essential for the economic growth of a country, he added.

The economy in grew at 5 per cent 2012-13, which was a decade low. And in the fourth quarter of FY13, the economy grew at 4.8 per cent.

The Reserve Bank of India has projected the economy to grow at 5.7 per cent in the current fiscal year, while the Finance Ministry has forecast a growth of 6.1-6.7 per cent.