India's economic growth is expected to improve in the ongoing fiscal year (2014-15) from 4.7 per cent in 2013-14, helped by a revival in industrial growth, improved fiscal health and external economic situation, Parliament was informed on Friday.
The Economic Survey 2013-14 tabled in the Lok Sabha early this month had projected the country to grow at 5.4-5.9 per cent in the current fiscal year.
"The growth rate of the country is expected to increase during 2014-15, compared to 2013-14," Finance Minister Arun Jaitley said in a written reply to the Lok Sabha.
He said that factors such as revival of industrial growth, improved external economic situation characterized by a stable current account, benign outlook on oil prices, improved fiscal health and modest revival in global economy can be expected to contribute to the GDP growth in 2014-15.
The country has been clocking a sub-5 per cent growth for the past two financial years, mainly on account of slowdown in investments.
In a separate reply to another question, the Minister said slowdown in investment has happened due to a combination of factors such as weak business sentiment, global slowdown, lower export demand, infrastructure bottlenecks and rise in interest costs owing to elevated inflation.
"The government continuously monitors macro-indicators including sectoral investment pattern in the economy," he said, adding that the investment rate declined from 35.5 per cent of GDP in 2011-12 to 34.8 per cent in 2012-13.
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