Growth will pick up by third qtr: Ahluwalia

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)

24 June 2009

Wednesday 24 June, 2009.

Growth will pick up by third qtr: Ahluwalia

Planning Commission Deputy Chairman Montek Singh Ahluwalia said the economic growth will pick up by the third quarter of the year.

The worst is now behind us and the country will now see more normal growth. The growth would pick up from the third quarter, Ahluwalia said speaking to reporters on the sidelines of an event in Mumbai on Tuesday.

He also said that he disagreed with International Monetary funds's pessimistic view on Indian GDP.

The international body had estimated the country's GDP to grow at 5.25 per cent in the current fiscal.

Referring to the high CPI numbers he said, the Consumer Price Index (CPI) numbers are high but it is based on prices which are old by some months.

"The CPI numbers are high but they are based on prices which are old by some months. The CPI moves like the Wholesale Price Index (WPI) but with a lag and it would also fall," he said.

At present, the CPI and WPI numbers are showing contradictory picture on inflation with WPI moving into the negative zone for the first time, while CPI is at about 10 per cent.

Ahluwalia also said that there is no need to worry about the delay in the arrival of the monsoon.

The Met department has forecast rains would be delayed by a week or two and "hence, there is nothing to worry about," he said.