Fin secy sees GDP growth at 6.5% this fiscal

The GDP growth is expected to be at 6.5 per cent or above this fiscal, a senior government official said on Monday. "We expect the growth rate to be 6.5 per cent or above.

"Growth in the economy was very encouraging and it is expected to improve further going forward," Finance Secretary Ashok Chawla told reporters on the sidelines of a function in New Delhi.

On the back of a good performance in the manufacturing and service sectors growth can be maintained, he said. Asked about the monsoon, Chawla said that the less amount of rainfall so far would definitely affect agricultural output.

However, the contribution of agriculture to GDP is only around 18 per cent and the manufacturing and service sectors will compensate for any shortfall from agriculture, he said.