The economy is likely to witness a growth rate of 6.8 per cent in the next year driven by the reform push of the government, says a report.
According to global research firm Dun & Bradstreet (D&B), India's GDP is likely to register 5.5 per cent growth during 2012, much below the expansion level achieved in the previous year. However, growth is expected to revive in the next year.
"GDP is likely to clock a growth rate of 6.8 per cent during 2013 as policy environment improves, investment conditions revive and inflationary pressures abate," Dun & Bradstreet India Senior Economist Arun Singh said.
India's growth rate had fallen to nine-year low of 6.5 per cent in 2011-12 fiscal.
According to the official data, the economy grew by 5.3 per cent in the July-September period this year, while in quarter ended June 30, the economy grew by 5.5 per cent.
The year 2013 is likely to see a resurgence in the industrial activity and modest upturn in the services sector which would support revival in growth levels, the report said.
"The pace of reforms that has been started must continue uninhibited and needs to be effectively implemented so that it translates into tangible investment decisions," D&B added.
In order to boost investment activity and overall growth momentum, the government initiated a slew of reforms like – allowing FDI in multi-brand retail, aviation and broadcasting, hiking diesel price, capping the number of subsidised LPG cylinders, opening up pension sector to foreign investment and raising the FDI cap in insurance to 49 per cent.
The report said RBI is expected to start easing policy rates from January 2013 "in cognisance of the moderation in demand side pressures to inflation and greater than anticipated slowdown in growth".
Easing of policy rates will be conducive for the investment of the domestic economy, the report said.
Though inflation levels are much above the Reserve Bank's comfort zone of 5-5.5 per cent, it is showing some signs of easing in recent months.