In its Annual Report 2012-13, Reserve Bank of India (RBI) said the economic growth may recover later in 2013-14 if government delivers better administration, eases supply constraints and maintain stability.
Economic growth in the country slipped to a decade-low level of 5 percent in 2012-13 and this year the RBI expects growth to be 5.5 percent.
The government took some positive steps to promote economic growth and this along with favourable monsoon may support the economy, RBI said in the report.
Agriculture sector and hence the rural demand for industrial goods and services may get a boost from the normal and spatially well-distributed rainfall, RBI said.
In the current monsoon season till August 13, 2013, RBI’s foodgrain production weighted index showed that rainfall was 10 percent above normal.
The report, however, highlighted that industrial growth has been nearly stagnant for two years now, with signs that the stagnation has extended into 2013-14.
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