New Delhi: Rating agency Moody's on Thursday
revised upwards India's economic growth forecast to 6.4 per
cent for the current fiscal on the back of "stronger-than-
expected" first quarter growth rate of the country.
"The stronger-than-expected start of the fiscal year has
prompted ... to revise India's annual growth forecast from 6.2
per cent to 6.4 per cent," Moody's economy.com, a research arm
of Moody's, said in a release.
The country managed a reasonable economic growth of 6.1
per cent during the first quarter of the current fiscal
despite the global financial crisis.
However, it said that despite a generally positive
outlook, downside risks are still looming.
"Farm output is likely to show a noticeable decline in
September and December periods, heavily weighing on overall
GDP growth," it said.
The robust momentum in manufacturing during recent months
may be unsustainable in the near term, it said. "Policymakers
certainly cannot rule out chances of a dip in the September
quarter before activity continues with its mild upward trend."
Moody's also said that India's medium-term prospects are
rosy. The annual GDP growth is likely to accelerate to 7.2 per
cent in the next fiscal and further accelerate until reaching
a pace of about 9 per cent in 2012-2013.
Bureau Report
First Published: Thursday, September 03, 2009, 19:11