New Delhi: India's economic growth will cross the 8% mark this fiscal on the back of good monsoon and pick up in manufacturing, NITI Aayog Vice-Chairman Arvind Panagariya has said.
"India will cross 8% economic growth during the current fiscal. Good Monsoon will push farm sector growth to 4-5% this year," Panagariya said.
He said the growth in the last quarter of the previous fiscal touched 7.9% because of uptick in manufacturing activity and improved performance of agriculture sector.
According to the data released by the Central Statistics Office (CSO), manufacturing sector during the fourth quarter recorded a growth rate of 9.3% while farm sector grew at 2.3%.
India economy clocked a five-year high growth rate of 7.6% in 2015-16, mainly on account of good performance of manufacturing and improvement in farm sectors.
Panagariya was of the view that economy will grow at a higher rate as revenues are increasing and inflation has entered the positive zone.
Higher wholesale inflation rate indicates the rise in margins for the industry.
Rising for a second straight month, wholesale price-based inflation jumped to 0.79% in May with vegetable prices witnessing a double-digit growth.
The April WPI based inflation was at 0.34% and in March it was (-)0.45% while it stood at (-)2.20% in May in 2015.
After remaining in negative zone for 17 months, the WPI inflation turned positive in April in 2016.
Retail inflation too touched a 21-month high of 5.76% in May mainly on rising prices of food items.
Reserve Bank has pegged growth at 7.6% for the current fiscal, while the Economic Survey has projected the economic growth at 7-7.75% for this fiscal.
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