Chennai, Sep 24 (IANS) India's growth rate for this fiscal will be 6.7 percent as the monsoon has turned out to be better than expected and the growth would pick up during the second half of the year, a top economist said Monday.
"Our forecast was that the growth rate will be around 6.7 percent which is slightly better than last year. I think the growth will pick up in the second half and indications are there," C. Rangarajan, chairman of the economic advisory council to the prime minister told reporters here on the sidelines of the Annual Day celebrations of the Madras School of Economics.
He said the performance on the farm front will be better than what was expected earlier as the monsoon has turned out to be better than expected.
Global ratings agency Standard & Poor's Monday said it has lowered India's economic growth forecast by one percentage point to 5.5 percent for 2012 due to deficient rainfall, a lingering crisis in the Eurozone and weak recovery in the US.
According to Rangarajan, economic reforms are a continuing process and progress should be towards fiscal consolidation.
He said the country should work towards restraining the current account deficit.
On subsidies, Rangarajan said they should be watched and kept at around two percent of the gross domestic product (GDP).
He said the subsidies should be targeted so that the intended sections are benefitted.