New Delhi: Economic think tank NCAER today lowered the economic growth projection to 6.9 per cent for the current fiscal from earlier estimate of 7.2 per cent, mainly on account of lower farm output.
Even the revised projection is much more optimistic than
what has been projected by the Prime Minister, his advisory
panel, RBI, IMF and many others.
"The decline in the growth is a result of decline in the
estimated agricultural output," National Council of Applied
Economic Research (NCAER) said in its latest quarterly review
of the economy.
While agricultural Gross Domestic Product (GDP) is
projected to decrease by 1.5 per cent, industrial GDP
(inclusive of construction) is projected to increase by 6.9
per cent, it said.
Prime Minister Manmohan Singh had projected GDP to grow
at 6-6.5 per cent during the current fiscal.
Last week, the Reserve Bank in its second quarterly
review of the monetary policy, retained its economic growth
outlook at 6 per cent with an upward bias in FY'10.
The review said, the significant below normal rainfall in
the current monsoon has meant that the Kharif output would be
lower than in the previous year.
While some of this decline may be offset by the rabi
crop, as a result of rainfall received in October, it is
unlikely to fully mitigate the decline in Kharif output, it
added.
Bureau Report
First Published: Wednesday, November 04, 2009, 19:10