Financial Express reported that faced with subdued manufacturing sector performance, PM key advisor Mr C Rangarajan recently lowered the growth projection for the current fiscal to 6% from 6.7% estimated earlier.

Mr C Rangarajan PM Economic Advisory Council said that "The disturbing area is manufacturing, therefore one may have to revise estimates downwards. It is quite possible for the economy to pick up in second half and give a growth rate close to 6 per cent for the year as a whole."

The PMEAC, in its Economic Outlook for 2012-13 report in August had projected the Indian economy to grow at 6.7%.

The Indian economy grew at a faster pace of over 8% in 2 consecutive fiscal before falling to a 9 year low of 6.5% in 2011-12.

Mr Rangarajan said that the economic growth in the Q2 would be around 5.5%, as recorded in the Q1 as the recent set of industrial output data does not show any improvement.

He said that "I see a strong pick up in the growth of key manufacturing sectors like coal, power, road and railways. The monsoon has turned out to be little better than what was expected, therefore agriculture production may do better than what was originally expected."

Source - Financial Express

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