New Delhi: India's growth rate is expected to slip to 4.9 per cent in the current fiscal but will improve significantly to 5.6 per cent in 2014-15, India Ratings said today.
"Our expectation for improved growth in FY'15 is based on a partial recovery in the industrial and services sector growth, and an uptick in investment due to project clearances by the Cabinet Committee on Investment (CCI)," said India Ratings, a Fitch group company.
India's growth rate plummeted to decade's low level of 5 per cent in 2012-13.
The economic outlook report projected growth of 5.6 per cent with farm sector expansion at 3 per cent, industry 4.1 per cent and services 6.9 per cent in 2014-15 fiscal.
Outlook for the Indian economy is looking significantly better now than it did in mid-2013 when the country was struggling with current account and fiscal deficit, falling rupee and high and stubborn inflation, it said.
"Better-than-expected monsoons, rising exports, swift policy as well as project clearance actions by the government and deft currency management by the RBI have improved business sentiments," the report said.
