Investment spurt will ensure 5% GDP in 2013-14: Mayaram

Encouraged by spurt in investment activities in the later half of the fiscal, Economic Affairs Secretary Arvind Mayaram said 2013-14 is likely to end with an economic growth of about 5 per cent.

"There are some of the number we are looking at the moment ... new investment projects have risen to 4.9 per cent of GDP in October-December quarter from 3.6 per cent in the previous quarter, which means investments are now beginning to take place," he told PTI in an interview.

With increase in investments, he said, the demand for critical inputs like cement, steel and core industries, among others would go up.

"So, to that extent, I think the growth is going to be reflected in this third and fourth quarter and it should reach that level that we are discussing ... We expect growth should be around 5 per cent," Mayaram said.

Stressing his point further, he said, the World Bank in its global economic prospects has projected a growth around 4.8 per cent at the market prices for India.

"At factor prices you will see (growth) higher than at market prices. So it should be more than 5 per cent," he added.

India's economic growth had slumped to a decade's low of five per cent in 2012-13.