The Hindu : Economy to grow 5.5 p.c.

Online edition of India's National Newspaper
Sunday, Aug 24, 2003

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Economy to grow 5.5 p.c. — IMF

NEW DELHI AUG. 23. The International Monetary Fund has said the Indian economy will grow 5.5 per cent this fiscal following recovery in agriculture due to good monsoon, but warned of large fiscal deficit and public debt increasing investment uncertainty. "The projection (of 5.5 per cent growth) for 2003-04 incorporates a recovery in agriculture, but there is potential for an even stronger rebound in this sector,'' the Washington-based lender said in its annual review of Indian economy. However, IMF expressed concern at the growth rate, which "was still off mid-1990 levels of 6.5 per cent which had implications for reducing poverty.''

In the fiscal deficit, which was 5.9 per cent last fiscal, exceeding the target of 5.3 per cent, the IMF said, "India's large deficits and public debt are exacting an economic cost in terms of foregone growth. — UNI

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Economy to grow 5.5 p.c. — IMF