Mumbai: Centre for Monitoring Indian Economy (CMIE) Thursday marginally revised the GDP growth for the country in 2011/12 to seven percent against 7.1 per cent that was forecast earlier.
The economy grew by 7.3 percent in the first half of FY 12. In the second quarter, growth slowed down to 6.9 percent. This was the slowest expansion in a quarter in the past two years and growth is expected to be lower in the second half, CMIE said in its monthly review here.
The economy had recorded a robust growth of over eight per cent in 2009-10 and 2010-11. Growth had bounced back after slumping to 6.8 percent in FY 09 amid global liquidity crisis. The setback to economic growth in the first half of the current year as compared to the previous two years was on account of a decline in mining output and weak growth in manufacturing and construction sector, it said.
The mining sector was hit by production bottlenecks while illegal operations led to a ban on iron ore mining. Coal production was also hit because of reasons ranging from heavy rains to employee strikes. Natural gas production too declined by 8.5 percent during April-November 2011, because of a drop in gas production from RIL's KG D6 basin, it said.
CMIE expects manufacturing GDP to rise by 4.9 percent during 2011-12 against 5.6 percent forecast earlier due to the sedate growth in manufacturing production index in the first seven months of FY 12.
CMIE pointed out that the agriculture sector is expected to grow by 3.1 percent in 2011-12 which is healthy as it comes over and above the 6.6 percent rise in 2010-11. It expects agri sector to do well due to bumper harvest of rice, cotton and sugarcane.