NEW DELHI (Commodity Online): India's economy for 2012-13 is likely to grow in the range of 7.5 to 8%, while inflationary pressure is expected to ease through 2012-13 and will remain around 5-6%, according to Prime Minister's Economic Advisory Council (PMEAC).
The rate of growth in 2011-12 is estimated at 7.1%, which is marginally higher than the projection of 6.9% as per the Advance Estimates (AE).
The council has said that global economic and financial conditions likely to remain under pressure during the year.
Meanwhile, investment activity has slowed down and as a result the Gross fixed Capital formation (GFCF) for 2011-12 has slipped to 29.3% , a decline of almost 4 percentage points over the last four years.
Mining and quarrying sector likely to report negative growth for 2011-12 on account of weak coal output growth, restrictions imposed on iron ore production, decline in natural gas production and negative growth in crude oil output.
Manufacturing and construction have been sluggish during the first three quarters of 2011/12. This may show improvement in the last quarter. The overall growth rate will be 3.9% and 6.2% respectively.
