NCAER raises GDP forecast to 8.44%

Economic think-tank NCAER has revised its projections for India`s GDP growth to 8.44 per cent for 2006-07, from 8.13 per cent made in October, on estimates of higher growth in industry and services sectors.

New Delhi, Jan 17: Economic think-tank NCAER has
revised its projections for India's GDP growth to 8.44 per
cent for 2006-07, from 8.13 per cent made in October, on
estimates of higher growth in industry and services sectors.

In its quarterly review of the economy released today,
the National Council of Applied Economic Research, however,
kept its forecast for average wholesale price index-based
inflation unchanged at 4.98 per cent for the current fiscal.

The unchanged inflation expectations was because of some
relief from fall in crude oil prices and buoyant tax revenues.

NCAER's projected GDP growth was still lower than the
current trend of 9 per cent in the first two quarters of the
current fiscal, but higher than the October estimates.

The review projected lower fiscal deficit at 3.63 per
cent of GDP for this fiscal against the earlier forecast of
3.71 per cent and a dip in current account deficit to 1.93 per
cent of GDP against 2.11 per cent assessed in October.

It has projected higher growth in industry and services
sectors by 0.53 per cent and 0.29 per cent respectively to
9.13 per cent and 10.24 per cent.

However, growth projection for the agriculture sector
has been retained at 2.65 per cent for the entire fiscal. The
sector has had to contend with an erratic and uneven rainfall
across regions in the current monsoon period, it said.

Bureau Report

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