New Delhi, Oct 21 : The Prime Minister''s Economic Advisory Council which is chaired by C. Rangarajan, on Wednesday projected a 6.5 per cent growth in the next financial year.

This is 0.2 per cent less than the current fiscal growth of 6.7 per cent.

Addressing a press conference here, Rangarajan said the Indian economy was able to weather the financial crisis well.

Committee projected around 23 per cent deficiency in monsoon will lower the agriculture output, but projected good prospects for the rabi crop.

He said, the food grains production is estimated to be around 223 million tones next year as compared to 234 million tones this year.

The council said country export growth been curbed due to the adverse conditions like recession, higher household savings and demand contraction in developed economies.

A further negative shock to the global financial system and global inflation could threaten growth in Indian economy, Rangarajan said.

In its report, the council asked the government to give more focus on agriculture and power sector and immediate steps to manage inflation, especially food price inflation.

Ragarajan led council also asked the government to strengthen the public distribution system (PDS).

The council also suggested the government to take steps to improve farm productivity with the optimal use of technology.

In the power sector council said that there is an imperative need to achieve targets and suggested to have an active plan over a time horizon of 15 years for capacity creation in electricity.

The council also asked the government to actively explore fuel sources like natural gas and nuclear energy to meet the demand in the power sector. (ANI)