Finance ministry hopeful of 5.4-5.9 per cent growth this year

The finance ministry expects the economy to record a growth rate of 5.4-5.9 per cent this year as it said 5.3 per cent second-quarter GDP expansion is on expected lines.

Economy grew at a rate of 5.7 per cent in April-June period.

"The growth in the second quarter of the current financial year 2014-15 has been broadly on the expected lines," it said in a statement, after the release of economic data for this period.

Referring to the Economic Survey projection that the growth of GDP would be in the range of 5.4-5.9 per cent, the ministry said: "In the first half of the year the growth has been 5.5 per cent, which is broadly in line with the projections as well as the expectations."

GDP expansion in the second quarter was pulled down mainly by poor performance by agriculture and manufacturing sectors, which grew by 3.2 per cent and 0.1 per cent respectively.

The ministry also said lower growth in agriculture was expected in in view of lower than expected monsoon this year.