Real-time Stock quotes, portfolio, LIVE TV and more.
Sep 14, 2012, 09.17 AM IST
The Centre for Monitoring Indian Economy (CMIE) today revised the country's economic growth estimate for the current fiscal downwards to 6.3% on concerns from both the manufacturing and services sectors.
"We expect real GDP to grow by 6.3% during 2012-13. This is a downward revision from our previous forecast of 6.7% growth," CMIE said in its monthly review of the Indian economy released here.
A change in forecast for manufacturing sector and the consequent fall in the growth of the services sector prompted the revision, the think-tank said.
Government data released last month said India's economy grew 5.5% during the first quarter ended June.
Industry grew 3.6%, agriculture 2.9% and services sector by a relatively slower 6.9%.
The city-based research outfit joins a growing list of rating agencies and economists who believe GDP growth of Asia's third-largest economy will slip in the current fiscal.
The RBI has revised growth projection down to 6.5% while the Prime Minister's Economic Advisory Council's latest report has pegged it at 6.7% as against the budgeted target of 7.3%. Lowest among the projections
The fall in growth is being blamed on weak global conditions, especially debt crisis in eurozone, a sharp fall in rupee and a host of domestic factors.
These include 'policy paralysis' which is affecting decision-making and high interest rates due to rise in inflation.
CMIE has downwardly revised its estimate for growth in manufacturing sector, which grew 2.5% in FY12, to 3.2% for the fiscal from the previous 3.7%.
The slowdown in manufacturing is already starting to have a drag on services. The services sector's 6.9% growth in the June quarter was the slowest quarterly growth in three years, CMIE said, adding this growth was dragged down by the mere 4% rise in trade, hotels, transport, storage
May 17 2013, 12:38
- in FII View
May 17 2013, 12:39
- in MARKET OUTLOOK